Rachel Reeves says the government may need to raise taxes – here’s why

Stay up to date with notifications from The IndependentNotifications can be managed in browser preferences.Jump to contentThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged inAllNewsSportCultureLifestyle(PA)Chancellor Rachel Reeves has indicated that the government may need to raise taxes to fund an increase in defence spending, ruling out further borrowing. She stated that pressures to fund defence are 'only going in one direction' and that higher taxes are preferable to climbing interest rates and UK risk premia. The government's Defence Investment Plan, detailing long-term funding and strategy for the armed forces, is due to be published before next month's Nato summit. Reports suggest that No 10 has instructed departments to find one per cent cuts to their capital budgets to help meet the defence commitment. Former military leaders have expressed serious concerns about the current state of Britain's armed forces, citing a lack of investment and calling it a 'national embarrassment'. In fullRachel Reeves opens door to tax rises to pay for defenceThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in

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