Chancellor Rachel Reeves will likely have to raise taxes as part of “substantial” action needed at the autumn budget to plug a £51 billion black hole in the public finances, a major economic think tank has warned.
The National Institute of Economic and Social Research (Niesr) said weaker-than-expected recent economic activity, U-turns on welfare cuts and forecast-beating borrowing mean Ms Reeves is on track to miss one of her fiscal rules by £41.2 billion in 2029-30.
