Rachel Reeves' Budget Challenges
This is a news story, published by The Spectator, that relates primarily to Rachel Reeves news.
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lower spendingThe Spectator
•Rachel Reeves has backed herself into a corner on the Budget
64% Informative
Rachel Reeves appears to be starting her tenure as Chancellor from a position of strength.
But room for manoeuvre has been dramatically limited by decisions she has already made.
Unforced early errors have left her with only a handful of choices, fewer of which are palatable.
Almost all the government’s political ambitions require significant increases in public spending, which will mean tax rises.
Labour may still be bailed out by a factor in the economic cycle beyond the control of any chancellor.
Despite all the talk during the election of a plan for growth, there is surprisingly little evidence that the government has one.
Reeves is probably right that the country needs more infrastructure investment, but it could be better paid for with higher taxes.
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