Reeves admits she’s looking at tax rises and spending cuts in Budget
Britons braced for cuts and tax rises in Autumn Budget
- Rachel Reeves, the Chancellor, has indicated she is considering tax rises and spending cuts to address a significant financial deficit in her upcoming Budget.
- She attributed the economic challenges, including the need for fiscal adjustments, to the "severe and long lasting" impact of Brexit, alongside austerity and Liz Truss's mini-budget.
- The International Monetary Fund (IMF) has forecast that UK inflation will be the highest in the G7 in 2025 and 2026, although it increased its UK growth forecast for this year.
- Labour has pledged not to increase VAT, income tax, or national insurance, but Ms Reeves confirmed a review of "tax and spending" measures, implying potential cuts to public services.
- Experts warn the Chancellor faces a "desperate" situation with a potential £50bn black hole, suggesting major tax reforms rather than minor adjustments.