Laura Kuensbergpresventer, Sunday with Laura Kuensberg •@bbclaurakBbc
The Printemps Declaration is fast approaching – and the Chancellor faces difficult choices
Chancellor Rachel Reeves has excluded “taxes and spending” policies, reporting that she will increase the government’s taxes in her critical spring declaration next week.
Speaking in a BBC documentary, the manufacture of a Chancellor, Reeves also warned that the government could not afford the types of increase in expenses observed under the last Labor government.
On Wednesday, she should take cuts to certain ministries. More money has already been allocated to the defense by reducing the aid budget.
“We cannot impose and go our way to higher living standards and better public services. It is not available in the world in which we live today,” she said.
In its fall budget, Reeves has considerably increased tax levels and public expenditure – largely paid for additional taxes on companies that have proven to be very controversial.
But it is now under pressure on several fronts. Friday, it appeared that the government loan – the difference between its expenses and its tax revenues – was even higher than expected in February.
The official prediction of this month’s budget’s responsibility for the budget was 6.5 billion pounds sterling, but it reached 10.7 billion pounds sterling, leaving the chancellor with less tax margin.
Adding to the official growth forecasts of the Treasury for the economy is also likely to be reduced.
Last week, the Secretary of Works and Pensions, Liz Kendall, unveiled changes in sweeping in the system of benefits, aimed at saving 5 billion pounds sterling per year by 2030 and to create a more “work system” more, although the ministers did not establish the breakdown of forecast savings.
Changes will affect people demanding handicaps and health benefits, as well as those aged under 22, counting on additional payments when they are in universal credit.
Rachel Reeves has a challenge to find the tax margin
The Chancellor will indicate the impact of these more detail changes in her spring declaration, and should announce new reductions – this time to certain Whitehall departments – to respect her self -imposed rules for the economy.
The Treasury reiterated that these rules – so as not to borrow to finance daily public spending and lower debt as a share of the British economy by 2029-30 – are “non -negotiable”.
“What I have done so far is to put money in public services,” said Reeves in his interview with the BBC.
She said there was “real growth” in spending for each of the coming years “but not at the levels that we were able to deliver under the last Labor government when the economy increased much more”.
But the Grand-Grand-Grand Lord Blunkett wants Reeves “a little loose the self-imposed tax rules”, calling them “the orthodoxy and monetarism of the treasury and monetarism”.
Getty images
Lord Blunkett wants reeves tax rules to be relaxed
Speaking on Saturday at the BBC Radio 4 week in Westminster, the former secretary of works and pensions under Tony Blair said that he would increase the self-imposed rule by at least 10 to 15 billion pounds sterling “to help finance” a new agreement for the unemployed, obtaining half a million young people who are not work and training in a training program or a training program “.
Reeves spoke to me earlier this week in the middle of discomfort among labor deputies during social protection changes.
In the interview, she opened how the work takes place so far after a certain number of controversies not only on her decisions, but also on the precision of certain parts of her CV.
When asked if she had been treated fairly, and in the same way as her male predecessors, Reeves said to me: “I think it would be to others to judge and people to judge over time.
“I recognize that with the privilege of doing a job like the one I do today, also comes a lot of control. I absolutely believe that each policy I announce, each public money book, taxpayers’ money that I spend, and each book I take from people is correctly examined. It is part of the work.
“One of the things that I think I find difficult, even with the thicker skin, I suppose that I had to develop in the past 14 years, it is one of the personal criticism because it is not the kind of policy that I do.”
Responding to Reeves’s comments on the economy, Chancellor Ghost Mel Stride said: “The Chancellor of Labor has promised” growth, growth, growth “, but since the budget, growth is declining, inflation is up and businesses has collapsed.
“Labor must have an emergency budget on Wednesday – a full situation of their own manufacture.
“Rachel Reeves must urgently rethink his anti-enterprise budget.”
