Reeves plans tax rise in October budget

Rachel Reeves said on Tuesday that taxes would need to be raised in her October 30 budget. This announcement comes after she identified a £22 billion shortfall in this year's budget earlier in the week.

"I think that we will have to increase taxes in the budget," Reeves said in an interview with The News Agents podcast.

She became the chancellor following the Labour Party's big election win on July 4.

Previously, Reeves had not explicitly confirmed a tax increase but had mentioned that "difficult decisions" would be necessary, including those related to tax.

She did not specify which taxes would be increased and reiterated her commitment not to raise the rates of income tax, National Insurance payments, value-added tax, and corporation tax.

The tax increase will be in addition to £13.5 billion worth of spending cuts announced for the next two years on Monday.

Reeves attributed the need for these cuts to the previous Conservative government, accusing them of covering up the true state of public finances.

The Conservative Party, which was in power for the last 14 years, denies these accusations and claims that Labour had always planned to increase taxes.

(With inputs from Reuters)