Reeves weighs tax rises and welfare reform as IFS flags budget gap

Chancellor Rachel Reeves is weighing a package of tax rises and welfare changes ahead of her November 26 Budget as officials and independent forecasters warn of a multi‑billion pound hole in the public finances. The Institute for Fiscal Studies said the government may need to find at least £22 billion through a mix of spending cuts and tax increases to restore the small buffer the chancellor set against her fiscal rules, while proposals under consideration include changes to the Motability car scheme for disabled people that could save about £1 billion.

The IFS, in a pre‑Budget analysis, urged Reeves to adopt more than the minimum adjustments, listing options such as suspending or altering the pensions triple lock, tighter limits on health‑related and disability benefit spending, and constraining growth in special educational needs funding. Ben Zaranko, an associate director at the IFS, said any package should be framed as reforms that improve outcomes, adding, "Trying to do it to chase particular savings isn't a recipe for success." Helen Miller, the IFS director, warned that a narrow approach would leave the government exposed to repeated market speculation, saying persistent...