Displaying items by tag: public finances

Rachel Reeves has dismissed claims that she faces a £50 billion 'black hole' in the public finances. She insisted that reports about massive funding gaps were exaggerated, saying many commentators were 'talking rubbish'. Concerns rose this week as long-term government borrowing costs hit a 27-year high, sparking fears of tax hikes or spending cuts ahead of the 26 November Budget. Reeves emphasised her commitment to two borrowing rules: that day-to-day spending must be funded from tax income by 2029–30, and that debt must fall as a share of national income within this parliament. While she ruled out tax rises on VAT, National Insurance, and income tax for working people, speculation continues over possibly targeting property, banks, and other sectors. She rejected talk of an IMF bailout, and promised to strike a balance between funding public services - particularly the NHS - and encouraging growth, saying there are already 'positive signs' in the economy. See https://news.sky.com/story/interest-rates-considerably-more-doubt-over-future-cuts-bank-of-england-governor-warns-13424292