Comments
View Image
Rachel Reeves has admitted she is looking at potential tax rises and spending cuts to fill a black hole in her Budget next month which she said was partly due to the lingering impact of Brexit.
The Chancellor said “of course, we’re looking at tax and spending” as she prepares for her November 26 statement.
She confirmed the budget watchdog had “consistently overestimated” the UK’s productivity, with the expected downgrade of its previous assumptions likely to make Reeves’ task even harder.
With no boom in economic growth, stubbornly high inflation and the mounting costs of government debt, Reeves will have to fill a black hole estimated at around £50 billion by some economists.
Reeves insisted today the economy was still suffering from the impacts of l