UK Chancellor Reveals Tax Hikes and Spending Plans

British finance minister Rachel Reeves is set to unveil a significant budget plan on October 30, which includes substantial tax hikes aimed at generating £40 billion annually to address a £22 billion shortfall inherited from the previous Conservative government. Reeves plans to modify the government's debt calculation rules to allow for increased borrowing for infrastructure investments, a move some experts warn could lead to rising debt levels and higher mortgage rates. While the changes are designed to restore economic stability and enhance public services, they have sparked concerns about potential fiscal risks and the implications for taxpayers. The Institute for Fiscal Studies has raised questions about the effectiveness of these measures, suggesting they may not lead to the desired economic outcomes. Reeves aims to align her fiscal strategy with broader governmental priorities, such as addressing NHS funding and public service improvements. The upcoming budget represents a critical moment for the Labour government, which is navigating significant economic challenges in its early days in office.