Major Blow to Rachel Reeves: Deficit Forecast Could Mean Higher Taxes or Cuts !

In today’s video, we break down the latest blow to Chancellor Rachel Reeves as the Office for Budget Responsibility (OBR) unveils its first verdict on the state of the UK’s finances ahead of the Spring spending review. The new forecast indicates that, due to policy missteps, Britain is now on course for a budget deficit—undermining Reeves’ key promise that day-to-day spending should be funded by taxes, not borrowing.

We explore how falling GDP growth, confirmed by the Bank of England, and rising borrowing costs on gilts have wiped out the initial £9.9 billion budget headroom. With the stability rule on the line, the government now faces a stark choice: higher taxes or drastic spending cuts. Could this fiscal crisis spark a major rebellion among Labour MPs?

Join us as we analyze what these developments mean for the future of the UK economy and how they might reshape government spending, fiscal policy, and political stability.

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