Summary
Rachel Reeves, a government official, dismissed claims of a £50 billion gap in the UK's public finances, despite rising borrowing costs and pressure on the chancellor before the autumn Budget. She stated she aims to balance the Budget effectively, addressing the importance of returning growth and investment to the UK economy, while denying rumors of specific tax increases.
Key Facts
- Rachel Reeves, a government official, disputed claims of a £50 billion deficit in UK public finances.
- The cost of long-term government borrowing in the UK has reached its highest in 27 years.
- Reeves aims to balance the upcoming Budget while promoting economic growth.
- Reeves has set two borrowing rules: covering day-to-day costs with taxes by 2029-30 and reducing debt as a share of national income by 2029-30.
- Labor has pledged not to raise taxes on working people, but there was a prior increase in National Insurance for employers.
- Speculation exists about possible tax increases, but Reeves denied these decisions are final.
- Global borrowing costs have risen due to international economic pressures, affecting countries including the UK.
