Rachel Reeves has been warned by top economists that she faces an “impossible trilemma” ahead of the autumn budget and must raise taxes or tear up her flagship borrowing rules to fill a £41bn black hole left by Labour U-turns, higher borrowing and sluggish economic growth.
The National Institute of Economic and Social Research (NIESR) – a leading economic think tank – said the chancellor could also look at spending cuts as a way to raise the money needed by 2029-30 to remedy a £41.2bn shortfall on her “stability rule”.
