Reeves will not raise taxes in the spring statement, the officials say

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Labor Party officials said, Chancellor Rachel Reeves will not raise taxes in the spring statement next week.

Reeves will resort instead Public spending discounts – A mixture of discounts in social welfare and savings of the planned budgets of the White Hall – to rebuild an adequate hall against its financial bases.

Reeves allies said it is determined to reassure the financial markets by maintaining an “reasonable” amount from the head room. One of them said: “The markets are watching us carefully.”

It is expected that the high costs of borrowing and slow growth have been eliminated most or all of 9.9 billion pounds from the head room in which the UK’s Financial Supervision Authority said that Reeves was at the time of its budget in October.

Government officials have rejected the suggestions that Reeves will try to increase this pillow significantly – a step that may need to spend more than that expected.

One of them said: “We want a temporary store, but we do not play a numbers game.” Reeves’s financial rule states that current spending must be matched by tax receipts by 2029-30.

Kimi Badnoush, conservative leader, claimed on Wednesday that Reeves’s financial plans were so much that she had to hold an “emergency budget next week”.

However, work officials said that the spring statement on Wednesday will not have any tax rise and any financial measures will be announced in the autumn budget.

“You impose a tax on a big financial event – this is not one,” said one of Reeves assistants, referring to the spring statement.

The consultant has already identified some savings to rebuild the head hall, including 5 billion pounds of luxury cuts Liz Kendall, Minister of Labor and Pensions, was announced on Tuesday.

In addition, the government’s decision to change part of its development budget abroad to defense, to raise military spending to 2.5 percent of GDP by 2027, will give the advisor additional flexibility.

This is because some defensive spending is classified as an investment, and it is exempt from the base of the Reeves budget.

The statement will be used to detect new pressure on spending on departments from 2026-27, according to the people who have seen their plans.

This schedule includes the upcoming spending period for the government, whose results will be announced in June, as well as the last year of Parliament.

Restore the annual growth of the real traffic in daily spending in departments to about 1.1 percent of 2026-27, compared to an average rate of 1.3 percent planned in the October budget, can provide billions of government billions of pounds.

The Institute of Financial Studies, a thinking center, estimates that the real spending rate is about 1.1 percent will provide 5 billion pounds annually by the end of Parliament, based on the inflation office in October from the Budget Responsibility Office.

Some economists criticized Reeves for their failure to build a greater amount of the head room from 9.9 billion pounds estimated by OBR last October.

This temporary store was the third smaller than 28 expectations by OBR since its foundation in 2010.