The Chancellor’s comments confirmed what we’ve all known for months — that tax rises are on their way in the Budget. She said “of course, we’re looking at tax and spending” as she scrambles to plug a black hole in the public finances. Speaking ahead of her November 26 statement, she blamed Brexit, Liz Truss’s disastrous mini-budget, austerity, conflicts around the world and Donald Trump’s trade tariffs — pretty much anything other than the Government’s handling of the economy. The International Monetary Fund added to the Chancellor’s woes when it predicted the UK will face the highest rate of inflation among G7 nations both this year and next, driven by rising energy and utility bills. The additional suggestion of spending cuts by Reeves is interesting. After the botched attempts at welfare cuts earlier this year it’s hard to see how this will gain the backing of Labour backbenchers.
