Following the announcement on increasing defence spending, economists at the Institute for Fiscal Studies (IFS) said the increase in defence spending to 2.5 per cent of GDP will cost the Treasury around £6bn, accusing the PM of misleading voters with his claim it amounts to a £13bn annual boost.
But as I have said before, in terms of the big decisions on tax obviously the Budget was the place that we took those decisions - but as ever, going into a statement I am not going to say in advance what we might do and what we might not do.”.
Keir Starmer has refused to rule out more spending cuts and tax rises ahead of Rachel Reeves’ spring Budget on 26 March.
The think tank also warned that chancellor Rachel Reeves might have to break pre-existing tax and spend promises to meet the PM’s longer-term 3 per cent spending target.
But the prime minister also tried to play down fears of a repeat of Rachel Reeves’ shock £40 billion tax rise Budget.
