Rachel Reeves faces a challenging budget with tight circumstances, unable to raise the main taxes that constitute 75% of government revenue, emphasizing limited options.
The IFS warns that the government's financial situation is dire, needing significant revenue increases while being constrained from raising the four main taxes.
Reeves highlights the Conservatives' legacy of a £22bn shortfall due to underfunded commitments, resulting in tough choices and necessary tax adjustments to address deficits.
The report expresses concern that temporary fixes from punitive taxes could ultimately undermine economic health, suggesting a need for long-term, effective revenue strategies.
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