The grim assessment comes from the respected IFS think-tank as the Chancellor prepares for the October 30 Budget.
Rachel Reeves needs a £25billion tax bomb to meet pledges and balance the books after her public sector pay splurge, a grim report warned today.
Rachel Reeves needs a £25billion tax bomb to meet pledges and balance the books after her public sector pay splurge, a grim report warned today But the party's pledges not to raise income tax and corporation tax or to increase National Insurance or VAT mean she may struggle to implement a tax rise on that scale.
IFS director Paul Johnson said Ms Reeves' first Budget, which she will deliver on October 30, could be 'the most consequential since at least 2010'. But, given her pledge to balance the current budget, that would not free up additional resource for day-to-day spending and in any case is not risk-free given the dual deficits – that is, both budget deficit and current account deficit – being run by the UK.'
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