Rachel Reeves promised in her Spending Review today to prioritise Britain’s security. But Chancellor’s decisions have left us on a profoundly risky economic path: one of high taxes, high spending, high borrowing, low growth, and huge exposure to global shocks, warns the Centre for Policy Studies.
In particular, today’s announcement confirmed that we are due for tax rises, both in the short- and long-term, given the hugely unrealistic forecasts for both capital and departmental spending in the second half of the Parliament, which will almost certainly have to be revisited.
CPS Director Robert Colvile said:
‘Given the state of the public finances, we need politicians from all parties to be honest with the public about our situation – in particular, the cavernous imbalance between tax and spending, the ever-rising costs of an ageing population, and the hazards of relying on borrowing to fill the gap.
‘Sadly, the Chancellor today kept us on the same precarious path, with billions poured into an unreformed NHS at the expense of other public services and day-to-day and capital spending alarmingly frontloaded.
‘As a result of Labour’s choices in government, more tax increases are inevitable – not just in the Autumn Budget but for years to come.’
ENDS
NOTES TO EDITORS
- Robert Colvile is Director of the Centre for Policy Studies
- Our 2024 Budget Briefing ‘Age of the Super-State’ is available here
- For further information and media requests, please contact Melisa Tourt on 07399 251110 and [email protected]
- The Centre for Policy Studies is one of the oldest and most influential think tanks in Westminster. With a focus on taxation, economic growth, housing, immigration, and energy abundance, its goal is to develop policies that widen enterprise, ownership and opportunity.
Date Added: Wednesday 11th June 2025
