Warnings of tax rises after Downing Street welfare U-turn

Prime Minister Sir Keir Starmer U-turned on welfare reforms following the possibility of a backbench rebellion (Eddie Mulholland/Daily Telegragh/PA) - (PA Wire)

There are predictions of tax rises in the autumn budget after Sir Keir Starmer U-turned on welfare reforms in the face of a backbench rebellion.

The Prime Minister said that the concessions strike “the right balance”, but think tanks have warned that the changes announced on Friday morning have made Rachel Reeves’ “already difficult budget balancing act that much harder”.