The Chancellor remains firm on her fiscal rules, which could lead to additional tax increases as outlined in the upcoming Autumn Budget. Criticisms have been directed at former Prime Minister Liz Truss for her recklessly high borrowing, which exacerbated economic issues. Shadow Chancellor Rachel Reeves emphasized the importance of considering investment benefits within fiscal strategies, highlighting a shift from past policies. The OECD advocates for increased tax revenues, while Defence Secretary John Healey hinted at potential tax increases needed for national security funding, suggesting a balanced governmental approach is critical during economic challenges.
The decisions we made in October mean for the first time the Treasury takes into account the benefits of investment and together the fiscal rules mean, unlike our predecessor, we will not be balancing the book by cutting investment.
My fiscal rules are non-negotiable. So let me be clear, it's not me imposing borrowing limits on Government, those limits are the product of economic reality.
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