Chancellor Rachel Reeves faces pressure to break key party manifesto pledges, specifically regarding potential tax hikes or cuts in public services. The International Monetary Fund warns that maintaining a commitment not to increase taxes on working people may require prioritization of spending to align public services with available resources. Last year, Reeves raised taxes by £40 billion to support the NHS. Additionally, the triple lock guarantee on the state pension could be replaced with a method of indexing to the cost of living.
The world’s most important financial watchdog has warned that Chancellor Rachel Reeves will likely break a key party manifesto pledge by hiking taxes or cutting public services.
The International Monetary Fund cautioned that unless authorities reconsider their commitment not to increase taxes on working people, further spending prioritisation will be required.
Rachel Reeves has previously raised taxes by £40 billion to fund new NHS investments, but faces pressure to balance the budget in the current economic climate.
The triple lock guarantee on the state pension may need to be replaced with an indexing policy based on living costs, according to recent reports.
Collection
[
|
...
]