Reeves urged by Dodds to consider Budget wealth tax

Former Labour minister Anneliese Dodds has asked the government to consider a wealth tax at the next Budget in order to plug holes in the public finances.

- MILLIE COOKE

The former shadow chancellor - who quit Sir Keir Starmer's government in February over the PM's decision to cut the foreign aid budget to fund a boost in defence spending - warned that spending cuts will not “deliver the kind of fiscal room that is necessary”.

The warning comes amid mounting questions over how the government will raise the money to fill the black hole in the public finances left by a series of major U-turns and spending commitments.

Ministers have already squeezed significant savings out of their departments in cuts that were unveiled at last month's spending review, meaning there is now a mounting expectation that the chancellor, Rachel Reeves, will be forced to raise taxes instead. But Labour's manifesto pledge not to raise taxes on “working people” leaves the chancellor with a limited number of workable options.

Speaking to Sky News's