Chancellor admits tax rises are being considered in the Budget

TAX and spending changes are being considered ahead of next month's Budget, Rachel Reeves has said.

- DAVID LYNCH

> Rachel Reeves

In an indication that some form of tax rises could be on the table, the Chancellor suggested the government needed to ensure there was “sufficient headroom” above its spending plans, and that its fiscal rules are met.

The Chancellor also suggested she was “confident” a trade deal with the Gulf Cooperation Council (GCC) could be finalised, as she spoke at Fortune Magazine's global forum in Riyadh, Saudi Arabia.

The Chancellor has previously insisted that Labour's manifesto commitment not to raise income tax, national insurance or VAT “stands” when questioned about how she will bridge a fiscal black hole in November.

But asked just last week about claims the Treasury was considering an income tax hike, Ms Reeves reportedly said she would “continue to support working people by keeping their taxes as low as possible” but was still “going through the process” of writing the Budget.