"Of course, we're looking at tax and spending as well. The numbers will always add up with me as chancellor."
"Challenges are being thrown our way - geopolitical uncertainty, trade barriers, and now the OBR's productivity review. But I won't duck those challenges."
"Nobody wants that cycle to end more than I do," she said. "That's why I'm focused on growing the economy."
Tax rises and spending cuts are being considered for next month's Budget to address a £30 billion shortfall in public finances. The shortfall stems primarily from an Office for Budget Responsibility productivity downgrade, policy reversals on welfare reforms, and the scrapping of planned cuts to winter fuel payments. Fiscal rules require that by 2029-30 day-to-day spending be funded entirely by tax receipts rather than borrowing, making new tax rises almost unavoidable. The government emphasizes economic growth to avoid a recurring cycle of annual tax hikes. Britain was the fastest-growing G7 economy in the first half of 2025 and the IMF slightly upgraded UK projections.
Read at Business Matters
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