Reeves acknowledges she is looking at tax rises ahead of Budget

"Chancellor Rachel Reeves has acknowledged she is "looking at tax and spending", ahead of her autumn Budget next month. Reeves said she would "always make sure the numbers add up", in an interview with Sky news against a backdrop of slow economic growth and mounting government debt. The chancellor has previously hinted at tax rises, and economists have said they expect taxes to go up in the Budget if the chancellor wants to meet her self-imposed rules on borrowing."

"Some analysts have estimated that the chancellor will have to increase taxes or cut spending to fill a hole in the public finances, estimated to be 20bn-30bn. Reeves received the Office for Budget Responsibility's (OBR) assessment of the economy on 3 October. Now the chancellor's brief comments make more explicit what has been assumed across Westminster for many months that tax rises in the Budget are inevitable."

Chancellor Rachel Reeves is examining both tax and spending options ahead of the autumn Budget as slow economic growth and rising government debt constrain fiscal choices. Economists and ministers expect tax rises to be likely if borrowing targets and self-imposed rules are to be met. Analysts estimate a public finance shortfall of around £20bn-£30bn that may require tax increases or spending reductions. Reeves received the Office for Budget Responsibility assessment on 3 October and signals indicate decisions will firm up in the weeks before the 26 November Budget announcement.

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