Chancellor Rachel Reeves Prepares for Budget Announcement

Chancellor Rachel Reeves is preparing to announce Labour's first Budget in 15 years, aiming to raise £40 billion through tax increases and spending cuts to address a £22 billion shortfall left by the previous Conservative government. She faces criticism for potentially raising National Insurance, which contradicts Labour's manifesto promise to not increase taxes on working people. Former Bank of England governor Mervyn King has urged Reeves to raise National Insurance while warning against excessive borrowing, emphasizing the need for transparency. The government is under pressure to make 'tough decisions' to stabilize public finances amidst rising costs of living and inflation. The upcoming Budget on October 30 is expected to include painful measures to protect essential services and the NHS, despite internal and external opposition. As Labour navigates these challenges, critics argue that any tax hike on employers would still breach their election pledges.