New British Finance Minister Confirms Tax Hikes Amid Budget Shortfall

Rachel Reeves, the new British finance minister, has confirmed that tax increases will be part of her Oct. 30 budget to address a 22 billion pound shortfall. Despite not specifying which taxes would rise, she reiterated that income tax, National Insurance, VAT, and corporation tax rates would remain unchanged. This comes alongside 13.5 billion pounds in spending cuts over the next two years, following claims that the previous Conservative government misrepresented public finances.

Rachel Reeves, the new British finance minister, confirmed on Tuesday that taxes will need to be raised in her Oct. 30 budget to address this year's 22 billion pound shortfall.

Speaking on The News Agents podcast, Reeves acknowledged the necessity of tax hikes, while ensuring that rates for income tax, National Insurance, VAT, and corporation tax would not be touched. She had previously hinted at 'difficult decisions' without explicit confirmation of tax increases.

The tax hikes will complement 13.5 billion pounds of spending cuts over the next two years. Reeves asserts these measures are essential due to fiscal mismanagement by the previous Conservative government, a claim the Conservatives deny.

(With inputs from agencies.)