Rachel Reeves is scrambling to fill an estimated £30billion hole in the public’s finances following several U-turns. The government has backtracked on its welfare reforms and scrapping the winter fuel payment for millions of pensioners.
But the Chancellor has committed to sticking to her fiscal rules which means tax rises could be on the way in the Autumn Budget. Ministers “pushed ahead too fast” and “didn’t listen enough” on welfare reform, the Education Secretary has said.
Bridget Phillipson added that future spending decisions had been made “harder”, when asked about the prospect of the two-child benefit cap being scrapped. Labour backbenchers have also been pushing for the Government to scrap the two-child benefit cap.
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