Rachel Reeves could raise £45bn in taxes and keep promises, report says

Rachel Reeves faces a series of tough tradeoffs between tax rises, spending cuts and limiting the fallout of her decisions, said US investment bank Morgan Stanley. Photograph: Victoria Jones/Shutterstock

Rachel Reeves could raise as much as £45bn in taxes without breaking Labour’s manifesto promises, according to a City report.

Economists at the US investment bank Morgan Stanley said they expected the chancellor to use next month’s budget to announce billions of pounds in tax increases to cover a potential £30bn shortfall in the public finances.