Budget tax rises ‘inevitable’ says influential think tank

TAX rises at the Budget are “inevitable’, a think tank with close links to Labour has said ahead of the major fiscal event later this month.

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Rachel Reeves will present the Budget later this month

The Resolution Foundation, however, suggested there was a way to implement tax rises which “boosts confidence in the economy and the public finances, while also reducing child poverty and the cost of living”.

Chancellor Rachel Reeves should aim to double her fiscal headroom in the November 26 statement to the Commons, the foundation suggested in its pre-Budget preview.

This would result in the buffer against unexpected changes in the economic headwinds being increased to £20 billion, but the think tank acknowledged an increase of £15 billion was “perhaps” more realistic.