The Chancellor said to be at the ‘mercy of events’ by not building up a bigger fiscal cushion
Economists warn that Rachel Reeves may be forced to raise taxes in the autumn Budget due to limited fiscal headroom and potential economic downgrades. Reeves has refused to rule out tax increases, fueling speculation. Critics point to previous tax hikes that negatively impacted businesses and economic growth. The OBR highlights domestic and global economic uncertainties, including potential trade wars, which could further impact Reeves's fiscal plans.
