Reeves' Conservative Party predecessor, Sir Jeremy Hunt, highlighted at the Annual Conference this week that this years’ Autumn Budget in the UK will be tough.

“The main issue for the government is the high level of debt,” Hunt told participants at the conference, held at London's National Galley. “Chancellor of the Exchequer Rachel Reeves has to choose between borrowing and spending. The Centre-Right wants less tax  and the Centre-Left more tax. To increase spending, tax has to be raised and to cut spending, taxes can fall. That’s why it will be a vey difficult budget. And the job has become a lot harder,” he said.

“We have to get debt under control. France is already in a catastrophic situation with its high level of debt. While Germany can afford to increase its debt. The US also has high debt levels,” he continued.

Since the start of 2025, the yield on the benchmark 10-year UK government bonds (gilt) has risen as high as 4.08 per cent, although it is off its highs for the year. There are worries that rising borrowing costs, at a time when inflation remains sticky, will condemn the UK to a "doom-loop" of deteriorating public finances, rising taxes and sluggish growth - or worse. 

Edmund Shing, global chief investment officer at Paris-based , also recently drew attention to the UK’s high debt levels, on a par with France, and thinks Reeves will be in a difficult position in the November budget. Shing highlighted the progress made in other European countries, like Italy, Spain, Portugal, Greece, over the last 10 years in reducing debt and improving their economic growth.

Hunt thinks that Reeves will avoid tax increases that are likely to damage growth in the Autumn Budget. “There may be rises in council taxes in the more expensive areas but the threshold freeze on income tax is likely to continue,” he said.

Another consideration being mulled over is abolishing the “seven-year rule” which enables gifts to be exempt from inheritance tax (IHT) seven years before someone dies. This would squeeze the wealth of the UK’s middle class further, who are already being hit by the freeze in IHT thresholds at £325,000 ($445,000). See more about tax hikes and concerns about inheritance tax here and here. In her late October budget of 2024, Reeves moved to scrap the UK's centuries-old resident non-domicile system, replacing it with a residency-based regime. Hunt had also promised to scrap the non-dom system and replace it. 

Hunt also believes there should be a “welfare reform” to reduce benefits for adults out of work. More people have dropped out of the workforce since the pandemic, affected by mental and physical health problems. Other commentators argue that the intersection of payroll/income tax and welfare creates a "welfare trap" that discourages people from working. 

“The logic for welfare reform is overwhelming,” Hunt continued.

On Brexit, Hunt said it was premature to judge the economic impact of it. “I voted to stay in the EU,” he said. “Our growth has been higher than Germany and the same as France. Some sectors have suffered. But Brexit can work if we are bold and can change the economic model. We have to think outside the Single Market and be like small countries such as Korea and focus on tech, defence, financial services.”

“The UK has one of the biggest defence sectors and increased investment in defence will open up opportunities in tech," Hunt said. He also highlighted the need to back start-ups and believes Reeves understands that.  

Hunt said US President Donald Trump - who is in the UK on a state visit - does not own the idea of national greatness. The UK politician recently published a book entitled “Can We Be Great Again?” He highlighted that a "great" country can own the world and also be shaken by it. “Britain has been a great force of good in the world and has been a top 10 influencer in many fields like defence and climate change,” he said. “But we have to sort out our debt and our economy if we want to maintain our influencer status.”

Despite criticism of Trump’s policies and tariff hikes, Hunt said that Trump is a brilliant communicator, and brilliant on social media. “It’s important for politicians like me to learn from that. Despite his busy schedule, he finds 2 to 3 hours a day to be on TV and communicate with people. We get to see the real guy – love him or loathe him.”

Like a number of wealth managers, such as , Hunt is optimistic about the outlook for UK equities which are often undervalued. Shing also believes that the UK is an interesting place to invest. See more here and here.