"But hinting at further tax rises in November's Budget, she said the government's choices had been made "harder" by international events and the "long-term damage" done to the economy. Reeves is facing a difficult Budget, with economists warning tax rises or spending cuts will be needed for the chancellor to meet her self-imposed borrowing rules. Pressed over whether she would have to put up taxes in a BBC interview ahead of her speech, Reeves said "the world has changed" in the last year -"
"Reeves criticised previous Conservatives governments, accusing Liz Truss of sending mortgage costs "spiralling" with her mini-budget. And in comments that will be seen as a swipe at the Labour mayor of Greater Manchester, Andy Burnham, Reeves said: "There are still those who peddle the idea that we could just abandon economic responsibility and cast off any constraints on spending. "They are wrong - dangerously so - and we need to be honest about what that choice would mean.""
The government pledged to keep taxes, inflation and interest rates as low as possible while indicating further tax rises may be needed in the November Budget. International events and long-term economic damage have made fiscal choices harder, and economists warn tax increases or spending cuts could be required to meet self-imposed borrowing rules. Wars in Europe and the Middle East, US tariffs and higher global borrowing costs are cited as pressures. Previous fiscal moves were criticised for increasing mortgage costs. Warnings were issued against abandoning fiscal constraints and the need for honesty about the consequences of that choice.
Read at www.bbc.com
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