Rachel Reeves wants to 'understand the full scale of the challenge' (Image: Getty)

       Rachel Reeves raised the spectre of punishing tax rises this autumn as she warned that Britain is facing the worst public finances since the Second World War.

       The new Chancellor said she has already ordered Treasury bean-counters to compile a dossier on the current state of play over the coming three weeks.

       by Taboola by Taboola

       Sponsored Link Sponsored Link

       Promoted Links Promoted Links

       Comparisons | Auto Insurance

       California Drivers With No DUI's Getting A Pay Day On TuesdayComparisons | Auto Insurance Learn more

       Undo

       The swift move has triggered alarm bells that Labour is laying the groundwork for up to ￡15 billion of tax rises in its first Budget.

       Both Rishi Sunak and Jeremy Hunt warned during the general election campaign that “as sure as night follows day” Labour will put up taxes.

       Such is its importance, one of the Daily Express’ 10 pledges in our manifesto - aimed at holding the new government to account - is for lower taxes.

       But in a worrying sign of things to come Ms Reeves used her first speech as Chancellor to pin the blame on the previous government for the “tough decisions” that lay ahead.

       Sponsored

       Sweet Penny Stocks

       Sweet Penny StocksBrittney Griner And Her New Partner Who You'll Easily Recognize

       Undo

       by Taboola by Taboola

       Related articles Martin Lewis issues foolproof pensions loophole to hand wealth to wife and kids Martin Lewis urges ‘avoid huge tax trap’ and spend pension ‘tax free’ Labour’s ULEZ, road tax and electric car law plans in full

       “I have repeatedly warned that whoever won the general election would inherit the worst set of circumstances since the Second World War,” she said.

       “What I have seen in the past 72 hours has only confirmed that our economy has been held back by decisions deferred and decisions ducked, political self-interest put ahead of the national interest. A government that put party first and country second.”

       Ms Reeves said that she had instructed civil servants over the weekend to make an assessment of the public finances “so that I can understand the full scale of the challenge”.

       In comments that will lead to speculation of tax rises, Ms Reeves said that previous governments had been unwilling to make the “difficult decisions to deliver growth”. She added: “I will not hesitate.”

       Economists have warned that the new Labour government will likely have little choice but to introduce tax rises to rebuild struggling public services.

       In the run up to the election, Paul Johnson, director of the Institute for Fiscal Studies (IFS), criticised all parties for a “conspiracy of silence” in the manifestos over the true scale of the economic and fiscal challenges facing the new administration.

       Trending

       Analysts at the investment bank Citi have said they expect a package of tax increases in the autumn worth around ￡15 billion.

       The IFS has warned that wealth taxes, such as inheritance tax and capital gains tax, are one of the few options left on the table for a Labour government.

       On the campaign trail, Labour ruled out increases to income tax, National Insurance, the headline rate of corporation tax and VAT, which combined make up around three quarters of the Treasury’s tax take.

       She has also come under pressure to tax interest paid to banks on reserves that they are required to deposit with the Bank of England. Mr Brown has suggested that introducing a tax could raise ￡1.3 billion.

       However, Ms Reeves said: “I’ve got no intention on changing the way the reserves are treated and the interest paid on those reserves.”

       Former Treasury Minister Alan Mak said the Labour party are already showing their true colours when it comes to taxation.

       “Conservatives cut National Insurance tax and returned inflation to the 2% target to ease cost of living pressures.

       “Labour will put up taxes, and come after your pay packet, pension, car, house and anything else they can tax.”

       The Conservative Party accused Ms Reeves of a “ruse” to raid pensions and push up taxes.

       A spokesman said: “Rachel Reeves herself said you don’t need to win an election to find out the state of the public finances. Admitting that with the OBR, there is already detailed public scrutiny of the country’s finances.

       “We warned that Labour would attempt this ruse as a cause to raid pensions and raise taxes. It is now clear that is coming to pass, and the British people will pay the price.”

       Ms Reeves, the first ever woman to be Chancellor, also unveiled a series of planning reforms and set out a "national mission" to deliver growth.

       She promised investors "Britain is a place to do business" and said many companies had doubted whether the country was previously a "safe haven".

       SUBSCRIBE Invalid email

       We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. Read our Privacy Policy

       Don't miss...

       Savers race to protect their wealth by doing this as Labour tax raids loom [LATEST]

       Labour Cabinet in full: Keir Starmer appoints Angela Rayner for top job in No10 [LATEST]

       Double death tax warning as Labour plots to tax inheritances TWICE [LATEST]

       Nigel Farage's brutal five-word takedown of Keir Starmer's brand new top team [LATEST]

       The Chancellor said her Government would build 1.5 million new homes over the next five years while relaxing planning restrictions on building on parts of the green belt.

       She also pledged to bring back mandatory housebuilding targets.

       Ms Reeves said: "I know that there will be opposition to this. I'm not naive to that.

       "And we must acknowledge that trade offs always exist.

       "Any development may have environmental consequences, place pressure on services, and rouse voices of local opposition.

       "But we will not succumb to a status quo.

       "This Labour Government has been elected to get things done to get Britain building again."

       John O’Connell, chief executive of the TaxPayers' Alliance, said: “As well as addressing issues with planning, the new government should take seriously the significant problems with the tax system and the many ways in which it harms economic growth and reduces investment.”

       During a tour of devolved nations, Sir Keir Starmer described the future of Tata Steel as being of “great concern” following a meeting with the Welsh First Minister.

       The Prime Minister visited the Senedd in Cardiff Bay on Monday to meet Vaughan Gething, the leader of Wales.

       His trip follows visits to the other devolved nations, having stopped in Belfast earlier on Monday and Scotland on Sunday.

       DON'T MISS

       Powered by

       Savers flee Labour 25% pension tax-free lump sum raid by piling into this safe haven

       2 Comments

       Labour adviser warns Rachel Reeves may need to launch raid on pensions for cash

       251 Comments

       Labour government: Tax changes to expect after Sir Keir Starmer wins election

       44 Comments

       Paying IHT once isn't enough for Labour - it could soon make families pay TWICE

       838 Comments

       Pension savers bombshell as Rachel Reeves makes pledge in landmark speech

       642 Comments

       The 5 'best countries' to move to if you're worried Starmer will obliterate your savings

       7 Comments

       Five things to do with your money after Labour win - and why you need to act NOW

       693 Comments

       Martin Lewis issues ‘pay a lot more' warning to graduates in these years

       Comments

       National Insurance, income tax and HMRC changes confirmed by Labour government

       4 Comments

       'I'm an inheritance tax expert - these are the most effective ways to reduce your bill'

       4 Comments

       'I'm a mortgage expert - here's what I think will happen to interest rates this year'

       3 Comments

       Labour's horror plot to 'redistribute' your inheritance tax leaked in audio recording

       321 Comments

       Labour General Election win may spark 'brain drain' over tax fears, say finance experts

       11 Comments

       China on the brink of disastrous economic meltdown as government bonds tank

       3 Comments

       Forbes

       Solid Credit? Discover the Holy Grail Credit Card Made for YouForbes Learn More

       Undo

       by Taboola by Taboola

       Sponsored Links Sponsored Links

       Promoted Links Promoted Links

       Keir Starmer's veiled warning to 411 Labour MPs as he issues big dose of reality

       116 Comments

       Labour tax fears: What could Keir Starmer claw back from Britons after landslide?

       12 Comments

       ‘I'm a savings expert - why Labour Government mean ISAs are now more important than ever'

       Comments

       Rachel Reeves vows 'no time to waste' in boosting growth as she reveals 'immediate' change

       1403 Comments

       Wellness Daily

       Men With ED: Eat 1 Teaspoon Every Day, See What Happens A Week LaterWellness Daily Watch Now

       Undo

       by Taboola by Taboola

       Sponsored Links Sponsored Links

       Promoted Links Promoted Links

       Desperate Emmanuel Macron's deal with hard-Left 'set to cost France ￡168bn'

       127 Comments

       Labour's plans for inheritance tax, capital gains tax and mortgages

       12 Comments

       PelvicFloorPro

       Gynecologists Baffled: Simple Stretch Relieves Bladder Leakage (Watch)PelvicFloorPro Learn More

       Undo

       by Taboola by Taboola

       Sponsored Links Sponsored Links

       Promoted Links Promoted Links

       Savers flee Labour 25% pension tax-free lump sum raid by piling into this safe haven

       2 Comments

       Labour adviser warns Rachel Reeves may need to launch raid on pensions for cash

       251 Comments

       Labour government: Tax changes to expect after Sir Keir Starmer wins election

       44 Comments

       Paying IHT once isn't enough for Labour - it could soon make families pay TWICE

       838 Comments

       Pension savers bombshell as Rachel Reeves makes pledge in landmark speech

       642 Comments

       The 5 'best countries' to move to if you're worried Starmer will obliterate your savings

       7 Comments

       Health Benefits

       Top Podiatrists: If You Have Toenail Fungus Try This Tonight (It's Genius!)Health Benefits

       Undo

       by Taboola by Taboola

       Sponsored Links Sponsored Links

       Promoted Links Promoted Links

       Five things to do with your money after Labour win - and why you need to act NOW

       693 Comments

       Martin Lewis issues ‘pay a lot more' warning to graduates in these years

       Comments

       National Insurance, income tax and HMRC changes confirmed by Labour government

       4 Comments

       'I'm an inheritance tax expert - these are the most effective ways to reduce your bill'

       4 Comments

       'I'm a mortgage expert - here's what I think will happen to interest rates this year'

       3 Comments

       Labour's horror plot to 'redistribute' your inheritance tax leaked in audio recording

       321 Comments

       FlirtForDate

       Dating For Older MenFlirtForDate Try Now

       Undo

       by Taboola by Taboola

       Sponsored Links Sponsored Links

       Promoted Links Promoted Links

       Labour General Election win may spark 'brain drain' over tax fears, say finance experts

       11 Comments

       China on the brink of disastrous economic meltdown as government bonds tank

       3 Comments

       Keir Starmer's veiled warning to 411 Labour MPs as he issues big dose of reality

       116 Comments

       Labour tax fears: What could Keir Starmer claw back from Britons after landslide?

       12 Comments

       ‘I'm a savings expert - why Labour Government mean ISAs are now more important than ever'

       Comments

       Rachel Reeves vows 'no time to waste' in boosting growth as she reveals 'immediate' change

       1403 Comments

       Desperate Emmanuel Macron's deal with hard-Left 'set to cost France ￡168bn'

       127 Comments

       Labour's plans for inheritance tax, capital gains tax and mortgages

       12 Comments

       Savers flee Labour 25% pension tax-free lump sum raid by piling into this safe haven

       2 Comments

       Labour adviser warns Rachel Reeves may need to launch raid on pensions for cash

       251 Comments

       Labour government: Tax changes to expect after Sir Keir Starmer wins election

       44 Comments

       Paying IHT once isn't enough for Labour - it could soon make families pay TWICE

       838 Comments

       Pension savers bombshell as Rachel Reeves makes pledge in landmark speech

       642 Comments

       The 5 'best countries' to move to if you're worried Starmer will obliterate your savings

       7 Comments

       Five things to do with your money after Labour win - and why you need to act NOW

       693 Comments

       Health Insight Journal

       Over 50 with Swollen Legs? Try This Simple Method to Drain Edema FluidHealth Insight Journal

       Undo

       by Taboola by Taboola

       Sponsored Links Sponsored Links

       Promoted Links Promoted Links

       It comes amid concerns about job losses at Tata steelworks in Port Talbot, where around 2,800 jobs are at risk.

       Although Keir Starmer ruled it out during the election campaign, economists have warned further education is among several public services likely to suffer cuts because of expensive commitments made on protected services such as the NHS and defence and green investment.

       The Resolution Foundation last month said ￡19 billion of cuts was needed from unprotected budgets for any new government to meet national debt targets by the end of the next parliament. One of Rachel Reeves’ “fiscal rules” is for debt to fall over that time.

       Related articles Pension savers bombshell as Rachel Reeves makes pledge in landmark speech Reeves slammed over one key problem with Labour's housing plan I was in the room when Rachel Reeves made history - but all I felt was Deja Vu Property market experts issue stark warning to Labour over housing plan Labour to make pensioners pay tax they don’t even owe - Starmer MUST stop this