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Chancellor Rachel Reeves admits tax rises and spending cuts considered for budget

Rachel Reeves faces a £50 billion fiscal gap partly caused by Brexit and rising inflation, forcing consideration of tax hikes and spending cuts despite prior pledges against tax increases.

  • Chancellor Rachel Reeves admits that tax rises and spending cuts are being considered for the forthcoming budget.
  • Reeves faces unpalatable options such as breaking fiscal rules, raising taxes, or cutting spending to address a potential £50 billion fiscal hole.
  • The Labour Party had pledged not to raise taxes on working people in their 2024 election manifesto, but Reeves indicates she may have to make difficult choices.
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Sky News UK broke the news in United Kingdom on Wednesday, October 15, 2025.
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