Reeves may be forced to hike taxes as ministers refuse to rule out welfare U-turn
Rachel Reeves may be forced to raise taxes to plug holes in Britain’s public finances, a leading think tank has warned, after the government failed to rule out watering down plans to slash the benefits bill. It comes ahead of the chancellor’s spring statement on March 26, where she is expected to make a raft of public spending savings to make up for tightening fiscal headroom and balance the books.Initial reports had suggested that Personal Independence Payments (PIP) would be frozen from rising in line with inflation for a year, but the plan has been met with strong opposition – and is now expected to be dropped. Rachel Reeves said the current welfare system is not working (Peter Cziborra/PA) More
