Rachel Reeves planning to raise taxes and cut spending in October budget

Chancellor insists she still has large black hole to fill despite stronger-than-expected growth in first half of 2024

Rachel Reeves is planning to raise taxes, cut spending and get tough on benefits in October’s budget amid Treasury alarm that the pickup in the economy has failed to improve the poor state of the public finances.

With the latest official set of borrowing figures out on Wednesday , the chancellor is insisting she will still have a substantial black hole to fill despite stronger than expected growth in the first half of 2024.

Raising more money from inheritance tax and capital gains tax.

Sticking to plans for a 1% increase in public spending even though it would involve cuts for some Whitehall departments.

Rejecting pressure to scrap the two-child benefit cap.

Changing the way debt is measured to exclude the Bank of England.

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