Labour lays ground for tax reforms as Reeves looks to fill £50bn hole

Labour is laying the ground for tax reforms this autumn that could spell misery for millions.

From September the Chancellor will be attempting to prepare the country for a difficult Budget that could be held in November, according to reports.

Rachel Reeves must find £50 billion in tax rises or spending cuts to balance the books, the National Institute of Economic and Social Research (NIESR) said this week.

However, she has vowed to stick to her pledge to not raise income tax, national insurance or VAT – and will also keep her fiscal rules preventing more borrowing.

The NIESR said higher-than-expected public sector borrowing and weaker economic growth had left the Chancellor with an ‘impossible’ choice.