Poorest to benefit from Reeves's spending but tax rises likely, says thinktank

"The Resolution Foundation warned that Reeves could be forced into further tax increases to maintain higher levels of spending, emphasizing the need for fiscal caution."

"A middle-income household would gain an average of £1,400 by the next general election, rising to £1,700 for the poorest fifth, reflecting the plan's focus on equity."

Rachel Reeves's new funding plan seeks to enhance public services like healthcare, education, and police, significantly aiding low-income families. The Resolution Foundation estimates that the poorest households could see benefits amounting to £1,700, while middle-income households might gain £1,400 by the next general election. However, maintaining this high level of spending may necessitate tax increases this autumn due to a sluggish economic outlook and unfunded commitments, raising concerns about fiscal sustainability.

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