Reeves Faces £51 Billion Budget Hole, UK Think Tank Says

UK Chancellor of the Exchequer Rachel Reeves is facing a £51 billion ($68 billion) shortfall to fill at the autumn budget, according to a prominent economic think tank that warned she will likely need to break Labour’s pledge not to raise major taxes.

Slow growth, higher-than-expected borrowing and U-turns on plans to cut welfare spending mean Reeves is on track to miss her rule to match day-to-day spending with tax revenue in 2029-30 by £41 billion, the National Institute of Economic and Social Research said on Wednesday.