Chancellor Rachel Reeves faces a growing £20bn hole in the UK’s finances as the Office for Budget Responsibility (OBR) is set to downgrade the UK’s productivity forecast ahead of the 26 November Budget. The downgrade could push the total fiscal gap to £40bn or more, forcing Reeves to consider tax rises or spending cuts.
Speaking in Saudi Arabia, Reeves blamed Brexit for weaker trade and productivity, saying the government must maintain “fiscal stability” and follow its budget rules.
Reports suggest options on the table include income tax changes and a mansion tax on homes worth over £2 million, though experts warn this won’t close the gap.
Julia Hartley-Brewer speaks with Labour councillor, Sebastian Salek.
Credit to : TalkTV