Chancellor Rachel Reeves announced that the government will likely increase some taxes in October's Budget, responding to a public finance deficit left by the previous administration.

During a News Agents podcast, she mentioned potential adjustments to inheritance tax, capital gains tax, and pension reforms while ensuring no increases in VAT, national insurance, or income tax as per the Labour manifesto.

Following her comments, she explained the need for sensible financial measures, including previous cuts and means-testing for winter fuel allowances.

Shadow Chancellor Jeremy Hunt criticized these moves, suggesting Labour would inevitably raise taxes.

The Institute for Fiscal Studies confirmed some hidden spending by the previous government but stated part of the deficit resulted from public pay decisions.

The debate continues, with Liberal Democrat spokesperson Sarah Olney calling for larger companies to contribute more in taxes.