Reeves ‘Will Have to Raise £40 Billion in Tax’ at Budget – Guido Fawkes

NEW REPORT: Reeves ‘Will Have to Raise £40 Billion in Tax’ at Budget

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Think tank the National Institute of Economic and Social Research says Reeves will have to plug a gap of around £40 billion at the Budget by increasing taxes again. Another autumn bombshell…

In its latest UK economic outlook report, published this morning, NIESR says the Chancellor’s ‘stability rule’ is well out, predicting a deficit of £41.2 billion in 2029/30.:

“This shortfall significantly increases the pressure on the chancellor to introduce substantial tax rises in the upcoming autumn budget if she hopes to remain compliant with her fiscal rules.”

The think tank says low growth, high borrowing, and recent U-turns on spending cuts are mostly to blame and says Reeves has a “trilemma”: she is stuck with her fiscal rules, laid down spending commitments, and pledges not to raise the three (two and a half) main rates of tax. It suggests a tax hike through council tax banding to raise cash. These warning shots are only getting louder as the October Omnishambles approaches…