Displaying items by tag: tax policy

Rachel Reeves has dismissed claims that she faces a £50 billion 'black hole' in the public finances. She insisted that reports about massive funding gaps were exaggerated, saying many commentators were 'talking rubbish'. Concerns rose this week as long-term government borrowing costs hit a 27-year high, sparking fears of tax hikes or spending cuts ahead of the 26 November Budget. Reeves emphasised her commitment to two borrowing rules: that day-to-day spending must be funded from tax income by 2029–30, and that debt must fall as a share of national income within this parliament. While she ruled out tax rises on VAT, National Insurance, and income tax for working people, speculation continues over possibly targeting property, banks, and other sectors. She rejected talk of an IMF bailout, and promised to strike a balance between funding public services - particularly the NHS - and encouraging growth, saying there are already 'positive signs' in the economy. See

The Government faces a £41.2 billion shortfall that could force Rachel Reeves to raise taxes this autumn to meet her own borrowing rules, according to the National Institute of Economic and Social Research (NIESR). Reeves has pledged that day-to-day spending will be covered by tax revenue and that national debt must fall as a share of income within five years. NIESR recommends moderate tax rises, including reforming council tax and expanding the scope of VAT, to reassure investors. Labour has previously ruled out tax hikes on 'working people’, but Reeves now faces a difficult balance between honouring manifesto promises, controlling debt, and funding public services. NIESR also urged the Government to focus on growth, productivity, and welfare reform. The poorest 10% remain worse off than before Covid. With sluggish growth projected, the autumn Budget is expected to be the most challenging of this Parliament. Breaking news: the Bank of England has cut its interest rate to the lowest for four years, which will benefit those paying mortgages. See