Reeves Expected to Consider Tax Hikes Amid Economic Pressures

Chancellor Rachel Reeves is facing scrutiny over potential tax increases and spending cuts following her recent Spring Statement, where she emphasized plans for economic growth through reforms. Despite the need for fiscal caution due to a £14 billion shortfall in public finances, Reeves highlighted initiatives like planning reforms that could enhance GDP by £6.8 billion by the end of her term. However, she has not ruled out the possibility of tax hikes later this year, with projections indicating the UK's tax burden may rise to a record high by 2028. The Office for Budget Responsibility warned that Reeves has a 50% chance of needing to implement new tax measures to adhere to her fiscal rules. Critics have raised concerns that her cuts to welfare could push 250,000 individuals into poverty, drawing backlash from Labour MPs and social activists. Overall, Reeves aims to balance economic growth while managing the delicate fiscal situation ahead of the next budget review in the autumn.