Keir Starmer will vow to “embrace the harsh light of fiscal reality” on Monday as his chancellor prepares to unveil a budget that includes billions of pounds in tax rises and spending cuts. The Prime Minister will give a speech in the West Midlands defending Labour's approach to the economy, as Rachel Reeves prepares to … Read more
Hundreds of millions of pounds of local transport funding in England could be cut in next week's spending review despite having been agreed with regional mayors, putting improvements to buses, tubes and trams at risk. Mayors, most of whom are Labour, are engaged in a last-minute foyer campaign to stop the Treasury from raiding their … Read more
The UK Treasury has said it will need to make tough decisions in next week's budget after higher debt interest payments and pay cuts for public sector workers pushed government borrowing to £16.6. billion last month – the third highest figure recorded in September. In the latest update on the state of the public finances … Read more
Starmer to face PMQs as reports claim Treasury must cover '£40bn funding gap' in Budget Good day. Governments engage in expectations management, and the latest example appears on the front page of the Monetary Occasions this morning, where there is a story saying that Rachel Reeves, the chancellor, has identified a “funding gap of £40bn” … Read more
The chancellor has said she wants to avoid a “return to austerity”. He has also said that he will present a budget that favors investment and growth. These are laudable goals, but he must fix a disastrous set of public finances, a difficult task not helped by the £22bn overspending uncovered this summer. This is … Read more