30th Oct 2024 13:05
(Alliance News) - UK Chancellor of the Exchequer Rachel Reeves on Wednesday said there are "no shortcuts" to delivering growth as she set out plans to "fix the foundations" of the economy.
In the first Labour government budget since 2010, Reeves pledged to "invest, invest, invest".
"On July 4, the country voted for change. This government was given a mandate. To restore stability to our country and to begin a decade of national renewal.
"To fix the foundations and deliver change through responsible leadership in the national interest. That is our task. And I know we can achieve it."
Reeves said taxes will rise by GBP40 billion as a result of the budget.
She pledged to restore stability to public finances and rebuild public services.
She confirmed the government will maintain the Bank of England's 2.0% inflation remit and predicted inflation will fall to 2.1% by 2027.
Reeves said forecasts from the Office for Budget Responsibility estimated inflation will be 2.5% in 2024, 2.6% in 2025, 2.3% in 2026 and 2.1% in 2027.
Economic growth is expected to pick up to 2.0% in 2025 from 1.1% from 2024. Growth of 1.8% is seen in 2026, before falling to 1.5% in 2027 and 2028.
Reeves said the OBR has been clear that the supply-side measures taken in the budget will boost long-term economic growth.
By Jeremy Cutler, Alliance News reporter
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