Uncertainty is growing around the Government’s economic plans as a minister refused to rule out new tax rises ahead of Rachel Reeves’ highly anticipated Spring Statement.
With public spending under review, questions are swirling about what decisions could be on the table.
Sarah Jones, industry minister remained tight-lipped about what may be coming when pressed for answers on Good Morning Britain.
She said: "I'm not going to speculate. I’m sorry about that, on what the Chancellor may or may not do.
“We know that we are waiting for the OBR, that we are looking at our spending, that we are investigating every penny that we spend in government, so that we are spending taxpayers’ money wisely.”
Asked again whether tax rises could be coming, Jones said: “I’m not going to speculate on anything that may or may not come from the Chancellor.
"Those are her decisions to make, and she will make them in the national interest.”
Rachel Reeves is under more pressure GB NEWSThe UK’s economic outlook has worsened since Rachel Reeves delivered Labour’s first Budget, where she had a £9.9bn cushion in her spending plans.
Since then, economic growth has stalled, while inflation and borrowing costs have gone up.
Adding to the pressure, Donald Trump’s planned trade tariffs could hit the UK economy, even if Britain manages to secure an exemption. On Wednesday, Prime Minister Sir Keir Starmer confirmed that talks have started with Trump's administration on a trade deal that could help Britain avoid these tariffs.
These challenges have left Reeves with little financial flexibility, making it harder for the government to adjust its spending plans.
Sarah Jones won't speculate on what the Chancellor may or may not do
PAThe Chancellor presented major changes to the Government's spending watchdog on Wednesday amid fears her fiscal wiggle room after October’s Budget has been wiped out.
Reeves is planning billions of pounds of cuts to benefits and other public spending ahead of this month’s spring statement, it has emerged.
Treasury sources indicated "the world has changed" since October's Budget and ministers have stressed the "moral case" for reforms designed to get people back to work.
However, experts warn that the only realistic way to cut welfare spending quickly is by reducing benefit amounts or tightening eligibility, so the changes can be included in the Office for Budget Responsibility forecast.
Welfare reform alone cannot solve the financial challenges, suggesting tax rises may be unavoidable.
A Treasury source explained that given the rate at which the welfare bill is spiraling, cuts would be necessary regardless of other economic factors
GETTYA Treasury source told The Independent that, given the rate at which the welfare bill is spiralling, cuts would be necessary regardless of other economic factors.
They stated: "This is something we would need to do" anyway.
The Government is bracing for a potential rebellion among Labour MPs over planned benefit changes, as it weighs tough decisions ahead of the Spring Statement.
With growing economic pressures, spending cuts alone may not be enough, forcing the Chancellor to consider tax increases despite political risks.
While the Treasury is focusing on welfare reform to control public spending, experts warn this won’t fully address the worsening fiscal gap.
