PREVIEW

Reeves Urged To Be Bold In Budget To Avoid Future Tax Rises. The chancellor, Rachel Reeves, has been urged to take decisive action in next month’s Budget to prevent future spending cuts or tax hikes. The Institute for Fiscal Studies warns Reeves will need to find around £22 billion to cover a shortfall in government finances, and may almost certainly have to raise taxes. The IFS says building a larger financial buffer beyond the existing £10 billion headroom would provide greater stability and prevent the government from "limping from one forecast to the next.” IFS director Helen Miller highlighted that operating with minimal headroom leaves the chancellor exposed to even small forecast changes, and could make the Budget process unpredictable. Miller stressed that the current situation is partly the result of prior choices, and that a bolder approach now could help secure more stable finances for the UK. The guidance comes as official figures show the UK economy grew slightly in August, underlining the importance of careful fiscal planning.
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