Ahead of the Budget, warnings suggested that Rachel Reeves could face a fiscal gap of up to £20 billion in meeting her self-imposed rule of not borrowing for day-to-day spending. Ms Reeves said: “People often talk about what chancellors do in their budget, but sometimes what’s more important are the things you don’t do. However, the OBR suggested it had provided ministers with no new forecasting in November. At the Budget on Wednesday, Ms Reeves hiked taxes by £26 billion, including by freezing thresholds on income tax. Ms Reeves also used some of the tax take to build herself a bigger buffer against her borrowing rules.
