Rachel Reeves has not dismissed the possibility of introducing additional tax increases in the spring while affirming the Government’s support for Heathrow’s third runway.
The Chancellor said she would wait for the following forecast from the Office for Budget Responsibility (OBR), scheduled for March 26, before finalising any tax and spending plans. She emphasised the importance of adhering to fiscal rules, describing them as “non-negotiable” and essential for maintaining economic stability. However, she noted that two months remain, and many developments could occur during that period.
In her October Budget, Reeves announced £40 billion in tax hikes and has faced criticism for allegedly undermining the economy by highlighting a “£22 billion black hole” in public finances.
During a comprehensive speech in Oxfordshire today, Reeves reiterated the Government’s commitment to Heathrow’s third runway, labeling it as “badly needed” and stating that the rationale for expansion is now “stronger than ever.” She mentioned that the decision has been postponed longer than any other and has been delayed for decades.
Reeves invited proposals by the summer and highlighted that the Government’s planning reforms are designed to ensure the successful delivery of the project. This announcement comes despite facing opposition from within the Cabinet, among backbenchers, and from London Mayor Sir Sadiq Khan.
