Summary
The article discusses the challenges faced by Chancellor Rachel Reeves as she prepares a new Budget. Tax increases are likely needed to address debt and improve public services, and some blame is placed on previous government decisions and external factors. The possibility of breaking promises related to not raising main tax rates is also highlighted.
Key Facts
- Chancellor Reeves needs to prepare a Budget addressing debt and public services.
- Tax increases may be necessary, possibly amounting to £30bn.
- Previous governments' decisions and external factors like trade tariffs and supply chain issues are cited for economic challenges.
- The productivity of the economy, which measures output per hour worked, remains low.
- There is speculation that tax rates like income tax might rise, despite previous pledges not to.
- Official figures show public service efficiency, especially in healthcare, has decreased since Labour took power.
- Analysts say tax rises from last year’s Budget have affected growth and inflation.
- Options for tax increases include levies on banks or the gambling industry.
