‘Tinkering around edges’ at Budget risks another year of economic pain, IFS warns Reeves
Tinkering around the edges at the next Budget risks another year of economic pain, a leading think tank has warned, urging the chancellor to take “bold action” in November. The Institute for Fiscal Studies (IFS) said it expects Rachel Reeves will need to find at least £22bn next month, thanks to rising borrowing costs, weaker growth forecasts and spending commitments made since spring. But the IFS said there was a “strong case” for the chancellor to go further, arguing that a £10bn buffer – the amount of headroom Ms Reeves previously left herself against her self-imposed debt rules – was not enough to ensure stability and would leave her “limping from one forecast to the next”. This funding, the think tank said, is likely to have to come from tax rises. While the think tank didn’t rule out spending cuts entirely, they said they would “pose challenges” due to a lack of parliamentary support for welfare cuts and the fact that departmental budgets were only agreed in June. Rachel Reeves is facing a ‘groundhog day’ Budget More
