Reeves insists Britain can ‘defy’ poor economic forecasts
Reeves rules out a return to austerity despite potential £20 billion funding gap
- Rachel Reeves, the Chancellor, is preparing for a tough Budget next month, aiming to "defy" negative economic forecasts.
- The Office for Budget Responsibility (OBR) is expected to downgrade its productivity forecasts for the British economy, creating a funding gap of over £20 billion.
- Reeves attributes Britain's weak productivity to austerity, Brexit, and the pandemic, stating her determination not to let past mistakes dictate the future.
- She is widely anticipated to raise taxes in the upcoming Budget due to increased borrowing costs, persistent inflation, and sluggish growth.
- Reeves has ruled out a return to austerity through significant spending cuts and also rejected higher borrowing, indicating tax increases are the "right, fair and necessary choices".