Rachel Reeves cites Brexit impact while looking at tax and spending' for budget

"She said: Of course, we're looking at tax and spending as she prepared for her 26 November statement. But the numbers will always add up with me as chancellor, because we saw just three years ago what happens when the Conservatives lost control of the public finances, inflation and interest rates went through the roof. Asked if Brexit was to blame, Reeves cited austerity, Brexit and the ongoing impact of Liz Truss's mini-budget as having an impact on her budget calculations."

"People thought the UK economy would be 4% smaller because of Brexit. Reeves said ministers were slowly undoing some of that damage with the government's recent EU arrangements on food, farming, youth mobility and energy trading, and with a priority of making deeper trade links, most importantly with the EU. She said she wanted to be the chancellor that gets stuff built in Britain as she vowed to push ahead with plans to fast-track major infrastructure projects and overhaul Britain's slow-moving planning system."

Tax rises and spending cuts are on the table for the autumn budget to tackle a growing shortfall in public finances partly attributed to Brexit, austerity and the mini-budget impact. The shortfall is estimated by some economists at about £50bn, including roughly £6bn after the government's U-turn on winter fuel payments and dropped planned cuts. The Office for Budget Responsibility has downgraded productivity forecasts after consistently overestimating growth, tightening fiscal headroom. Recent government actions include EU arrangements on food, farming, youth mobility and energy trading, a push for deeper EU trade links, and plans to fast-track infrastructure and reform planning.

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