Faisal IslamEconomics editor
In Liverpool Rachel Reeves seemed to be floating a pre-emptive argument ahead of possible tax rises in her November Budget.
The key line in the chancellor’s speech in relation to the Budget was her linking of tough decisions “in coming months” to global headwinds and a critical reassessment of the long-term productivity performance of the UK economy, about to be delivered by the Office for Budget Responsibility.
“We will face further tests, with choices to come, made all the harder by harsh global headwinds and long-term damage to the economy, which is becoming ever clearer,” she said.
This prepares the government’s argument if there does need to be further tax rises, even significant ones at the Budget.
Firstly, they will blame the broad global economic backdrop, of trade wars, actual wars and rising government interest rates. “The world has changed,” the chancellor told the Today programme.
Secondly, the OBR’s reassessment of the UK’s long-term economic trends is revealing “ever clearer” evidence of “long-term damage” which she will blame on the record of her predecessors.
Reeves warns of harder choices to come as she hints at tax risesWhen is the Budget and what might be in it?The other notable call was for “responsible management of public finance
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