Rachel Reeves planning to raise taxes and cut spending in October budget

The chancellor, Rachel Reeves, is concerned that borrowing was also higher than expected between April and June. Photograph: House of Commons

Rachel Reeves is planning to raise taxes, cut spending and get tough on benefits in October’s budget amid Treasury alarm that the pickup in the economy has failed to improve the poor state of the public finances.

The chancellor is insisting she will still have a substantial black hole to fill despite stronger than expected growth in the first half of 2024.