Rachel Reeves Sounds the Alarm
Rachel Reeves is gearing up to deliver some tough news to the nation, as she warns of "difficult choices" ahead and prepares the country for significant tax hikes.
Fixing the Economy
The Chancellor is determined to tackle the financial challenges head-on and has accused former PM Rishi Sunak of concealing the true state of public finances.
Nationwide Crackdown
Reeves is expected to unveil a £20 billion deficit in the national purse, prompting her to announce an Autumn Budget and a renewed effort to clamp down on wasteful spending in the public sector.
Cutting Back and Scrapping Projects
Plans to trim down bloated government bodies and reduce spending on external consultants are in the works. Major infrastructure projects, including the Restoring Your Railway Fund and the Stonehenge tunnel, may face delays or cancellations.
Tax Hikes on the Horizon
To bolster the country's finances, inheritance and capital gains taxes could see an increase in the coming months. Meanwhile, Prime Minister Keir Starmer has pledged not to raise VAT, income tax, or national insurance during this parliamentary term.
Political Backlash
Reeves's revelations have sparked criticism from Shadow Treasury Minister Laura Trott, who insists that all economic information has been publicly available. Trott also warns of a potential backlash from the public if Labour goes back on its promise not to raise taxes.
Budget Changes
As part of her plans, Rachel Reeves is set to announce a shift to one Budget per year, a departure from the current system of two Budgets annually that was proposed by the Tories in 2016.
