UK finance minister Rachel Reeves announced Thursday changes to fiscal rules to open up billions for investment in the centre-left government’s maiden budget, but warned of tax rises and spending cuts.
The highly-anticipated October 30 budget will be the first under Labour after 14 years of right-wing Conservative rule, with Prime Minister Keir Starmer already warning of “painful” decisions.
Reeves unveiled the new fiscal rules in an op-ed in the Financial Times, saying that sustainable growth requires “a responsible, long-term plan to invest in the future and improve living standards”.
The Labour government has made growing the UK economy a priority after winning national elections by a landslide at the start of July.
Reeves confirmed that “taxes will need to rise” in the budget, without revealing many details on which taxes will be included.
Labour has pledged not to hike taxes on …