#public-finances

#public-finances

Rachel Reeves could consider cutting the amount savers are allowed to withdraw in a lump sum from their pension pots as she seeks to plug a multi-billion-pound hole in the public finances. The chancellor will look at proposals from civil servants that could raise around 2bn by lowering the limit on how much people are allowed to take out of their pension without paying tax. Currently, pensioners can take out a quarter of their pension pot tax-free, with a cap of 268,000.

Chancellor Rachel Reeves stated that the fifth interest rate cut since last year's election is welcome news, assisting in lowering costs for mortgages and loans.

Niesr recommends a moderate but sustained increase in taxes, including reforming the council tax system, to address a 41.2bn shortfall in government finances.

Sir Keir Starmer has opened the door for the Labour government to unleash both wealth taxes and an extension of stealth taxes in a bid to balance the books following his welfare U-turns.

The cost of the state pension triple lock is forecast to be three times higher by the end of the decade than its original estimate, according to the government's official forecaster.

The National Audit Office reported that three quarters of asylum accommodation funding is now directed towards hotels, which are more expensive than community housing.