Kate is a Senior Trends Reporter at HuffPost UK, covering the day's most compelling stories. She has worked in the national news since she became a qualified journalist and was previously a reporter with Express.co.uk
The Treasury will today publish an internal audit where it will reveal a gap of £20bn between tax revenues coming into the government’s pockets and expected spending.Reeves is likely to cancel some road and rail projects, cut down on spending on external consultants and try to limit public sector waste in an effort to get the economy back on track.
It could mean the road tunnel under Stonehenge gets scrapped, as well as Boris Johnson’s New Hospital programme. Reeves is also likely to ask the Office for Budget Responsibility to assess the public finances, and possibly start a wider spending review to examine budgets over the longer period.Reeves could launch the Office of Value for Money, too, to identify and recommend savings.
She is not expected to suggest increasing taxes right now, though, as her annual Budget will still be unveiled in the autumn.Economists have been openly warning about the chasm in public spending for some time.both Labour and the Conservatives were “ducking” the reality the next government would face – either raise taxes, cut spending or drop their plan to reduce debt.But Labour have maintained that the situation they’ve uncovered since being elected is much worse than they expected.
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