Rachel Reeves, the new Labour Chancellor, is preparing to address a £40 billion shortfall in government spending through tax increases and potential spending cuts in her upcoming budget, set for October 30. Among the proposed tax hikes are increases in capital gains tax, fuel duty, and vaping product taxes, aimed at curbing youth vaping rates, with one in four children aged 11-15 in England reporting e-cigarette use. The government also faces pressure from motorists demanding VAT cuts, as 69% of surveyed drivers seek relief amid rising costs and anticipated car tax changes. Reeves has pledged to protect public services from cuts while ensuring the NHS receives necessary funding. Meanwhile, economists warn that the scale of required tax revenue could lead to larger welfare cuts than initially expected. The Chancellor's budget aims to balance day-to-day spending with revenues while avoiding austerity measures.