Taxes must rise to meet target, says thinktank

The National Institute of Economic and Social Research (Niesr) suggests that taxes need to increase in the autumn for Chancellor Rachel Reeves to meet her borrowing rules. Failure to do so could result in missing the target by £41.2bn. Niesr recommends a moderate and sustained tax increase, including reforming the council tax system. The government emphasizes the importance of growing the economy for strengthening public finances, while the Conservatives criticize Labour's reliance on tax increases.