Reeves to Unveil £40 Billion Fiscal Package

Chancellor Rachel Reeves is set to announce a significant fiscal package on October 30, proposing up to £40 billion in tax hikes and spending cuts aimed at closing a substantial budgetary gap and safeguarding key public services amid concerns of austerity. The proposed measures could include increases in national insurance contributions, capital gains tax, and inheritance tax to address the so-called '£22 billion black hole' in UK finances. Reeves faces criticism from within the Cabinet and business leaders for these potential tax increases, particularly the impact on employers and entrepreneurship. Despite the potential for backlash, Sir Keir Starmer has emphasized the need for 'tough decisions' while maintaining a commitment not to raise taxes on working individuals. Meanwhile, the recent drop in inflation to 1.7% offers a mixed economic outlook, providing some relief but also challenging for those on benefits linked to inflation. Overall, the budget aims to stabilize the economy and avoid a return to austerity, although ministers are reportedly appealing directly to the Prime Minister to mitigate severe departmental cuts.