Mel Stride warns the UK of further tax hikes next year. (Image: PA)

       Shadow Chancellor Mel Stride has warned Brits face more tax hikes next year after it was revealed two-thirds of Chancellor Rachel Reeves' ￡9.9 billion borrowing buffer has been wiped out already.

       Rachel Reeves has little headroom left as her spending rules set out just two months ago are at risk of being broken.

       DON'T MISS

       Powered by

       Keir Starmer on collision course with ballooning public sector workforce over pay

       162 Comments

       'There is no growth!' Nick Ferrari skewers Labour minister in furious LBC clash

       836 Comments

       POLL: Should Keir Starmer sack Rachel Reeves?

       117 Comments

       Lucy Powell admits there will be 'consequences' in dire economic warning

       66 Comments

       Andrew Neil's damning eight-word verdict on Labour after UK economy flatlines

       100 Comments

       ￡356 cost of living warning issued to UK households for 2025

       Comments

       Voters not sure Keir Starmer will even last another year as Prime Minister

       81 Comments

       Humiliation for Keir Starmer as UK economy to be 'closer to Guyana than US'

       244 Comments

       Rachel Reeves blamed for Boxing Day sales damp squib with shoppers 'reluctant to spend'

       82 Comments

       Rachel Reeves savaged over disaster budget as UK growth screeches to a halt

       990 Comments

       Boxing Day sales: Can retailers recover from Labour's Budget raid on consumer confidence?

       Comments

       Rachel Reeves urged to boost Christmas bonus for OAPs after winter fuel cuts

       117 Comments

       I've been counting Labour's lies and it's even worse than I thought - it won't stop either

       1272 Comments

       Rachel Reeves voted ‘worst politician of 2024' as shock voice says "I'd be getting rid"

       281 Comments

       Rachel Reeves humiliated as Chancellor on verge of breaking her own spending rules

       138 Comments

       Rachel Reeves's bombshell Budget has stifled economic growth: report

       717 Comments

       Labour accused of plunging UK into recession as business bosses tear into Rachel Reeves

       443 Comments

       Rachel Reeves set to break another promise after tanking economy with Budget

       325 Comments

       Rachel Reeves' Budget slammed again amid gloomy economic outlook

       13 Comments

       Rachel Reeves is dragging the UK back to the 'dark days' of the 1970s

       52 Comments

       Keir Starmer on collision course with ballooning public sector workforce over pay

       162 Comments

       'There is no growth!' Nick Ferrari skewers Labour minister in furious LBC clash

       836 Comments

       POLL: Should Keir Starmer sack Rachel Reeves?

       117 Comments

       Lucy Powell admits there will be 'consequences' in dire economic warning

       66 Comments

       Andrew Neil's damning eight-word verdict on Labour after UK economy flatlines

       100 Comments

       ￡356 cost of living warning issued to UK households for 2025

       Comments

       Voters not sure Keir Starmer will even last another year as Prime Minister

       81 Comments

       Humiliation for Keir Starmer as UK economy to be 'closer to Guyana than US'

       244 Comments

       Rachel Reeves blamed for Boxing Day sales damp squib with shoppers 'reluctant to spend'

       82 Comments

       Rachel Reeves savaged over disaster budget as UK growth screeches to a halt

       990 Comments

       Boxing Day sales: Can retailers recover from Labour's Budget raid on consumer confidence?

       Comments

       Rachel Reeves urged to boost Christmas bonus for OAPs after winter fuel cuts

       117 Comments

       I've been counting Labour's lies and it's even worse than I thought - it won't stop either

       1272 Comments

       Rachel Reeves voted ‘worst politician of 2024' as shock voice says "I'd be getting rid"

       281 Comments

       Rachel Reeves humiliated as Chancellor on verge of breaking her own spending rules

       138 Comments

       Rachel Reeves's bombshell Budget has stifled economic growth: report

       717 Comments

       Labour accused of plunging UK into recession as business bosses tear into Rachel Reeves

       443 Comments

       Rachel Reeves set to break another promise after tanking economy with Budget

       325 Comments

       Rachel Reeves' Budget slammed again amid gloomy economic outlook

       13 Comments

       Rachel Reeves is dragging the UK back to the 'dark days' of the 1970s

       52 Comments

       Keir Starmer on collision course with ballooning public sector workforce over pay

       162 Comments

       'There is no growth!' Nick Ferrari skewers Labour minister in furious LBC clash

       836 Comments

       POLL: Should Keir Starmer sack Rachel Reeves?

       117 Comments

       Lucy Powell admits there will be 'consequences' in dire economic warning

       66 Comments

       Andrew Neil's damning eight-word verdict on Labour after UK economy flatlines

       100 Comments

       ￡356 cost of living warning issued to UK households for 2025

       Comments

       Voters not sure Keir Starmer will even last another year as Prime Minister

       81 Comments

       Mr Stride claims “Labour’s assault on jobs and business confidence” has led to a surge in borrowing costs which has reignited inflation fears.

       Capital Economics have predicted that Ms Reeves' buffer has been sliced to just ￡3.5 billion, suggesting that diving any further into this figure could see her raise taxes or cut spending as soon as March.

       The Chancellor allocated herself such a small budget in the hope that day-to-day spending would be brought back into balance within three years.

       READ MORE: Rachel Reeves humiliated as she's verge of breaking her own spending rules

       The Shadow Chancellor says the country is in a "vulnerable position". (Image: Getty)

       However, Mr Stride has warned that further tax increases are on the horizon if economic policy is not realigned with growth.

       He told the Daily Express: “Labour’s budget and talking down of the economy are leaving us in an increasingly vulnerable position.

       "Shrinking fiscal headroom is a direct result of Labour’s assault on jobs and business confidence. Under Labour we are growing increasingly vulnerable to potential economic shocks such as the possibility of President Trump bringing in tariffs.

       “Rachel Reeves needs to think again fast. Economic policy must now be promptly realigned with growth not decline.

       “As pressure on her fiscal headroom increases there is a growing and real risk that the Chancellor may have to come back for further tax increases.”

       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

       READ MORE:

       Rachel Reeves’s bombshell Budget has stifled economic growth - report

       Tell us if you think Rachel Reeves will still be Chancellor next Christmas

       Rachel Reeves is dragging the UK back to the 'dark days' of the 1970s

       Trending

       Shadow Chancellor of the Duchy of Lancaster Alex Burghart. (Image: Getty)

       The government itself has refused to rule out raising taxes in the Spring Budget in order to meet Ms Reeves’ harsh borrowing limit as they insist a balance is “non-negotiable”.

       Shadow Chancellor of the Duchy of Lancaster Alex Burghart echoes the sentiment of Labour’s failed finances, adding that Sir Keir Starmer could sack Rachel Reeves in order to “reset”.

       He told the Express: “Labour’s Budget has failed - there’s a real danger they’ll hike taxes again. The big question for 2025 is whether the PM will try to reset by ditching his Chancellor.

       DON'T MISS

       Powered by

       Keir Starmer on collision course with ballooning public sector workforce over pay

       162 Comments

       'There is no growth!' Nick Ferrari skewers Labour minister in furious LBC clash

       836 Comments

       POLL: Should Keir Starmer sack Rachel Reeves?

       117 Comments

       Lucy Powell admits there will be 'consequences' in dire economic warning

       66 Comments

       Andrew Neil's damning eight-word verdict on Labour after UK economy flatlines

       100 Comments

       ￡356 cost of living warning issued to UK households for 2025

       Comments

       Voters not sure Keir Starmer will even last another year as Prime Minister

       81 Comments

       Humiliation for Keir Starmer as UK economy to be 'closer to Guyana than US'

       244 Comments

       Rachel Reeves blamed for Boxing Day sales damp squib with shoppers 'reluctant to spend'

       82 Comments

       Rachel Reeves savaged over disaster budget as UK growth screeches to a halt

       990 Comments

       Boxing Day sales: Can retailers recover from Labour's Budget raid on consumer confidence?

       Comments

       Rachel Reeves urged to boost Christmas bonus for OAPs after winter fuel cuts

       117 Comments

       I've been counting Labour's lies and it's even worse than I thought - it won't stop either

       1272 Comments

       Rachel Reeves voted ‘worst politician of 2024' as shock voice says "I'd be getting rid"

       281 Comments

       Rachel Reeves humiliated as Chancellor on verge of breaking her own spending rules

       138 Comments

       Rachel Reeves's bombshell Budget has stifled economic growth: report

       717 Comments

       Labour accused of plunging UK into recession as business bosses tear into Rachel Reeves

       443 Comments

       Rachel Reeves set to break another promise after tanking economy with Budget

       325 Comments

       Rachel Reeves' Budget slammed again amid gloomy economic outlook

       13 Comments

       Rachel Reeves is dragging the UK back to the 'dark days' of the 1970s

       52 Comments

       Keir Starmer on collision course with ballooning public sector workforce over pay

       162 Comments

       'There is no growth!' Nick Ferrari skewers Labour minister in furious LBC clash

       836 Comments

       POLL: Should Keir Starmer sack Rachel Reeves?

       117 Comments

       Lucy Powell admits there will be 'consequences' in dire economic warning

       66 Comments

       Andrew Neil's damning eight-word verdict on Labour after UK economy flatlines

       100 Comments

       ￡356 cost of living warning issued to UK households for 2025

       Comments

       Voters not sure Keir Starmer will even last another year as Prime Minister

       81 Comments

       Humiliation for Keir Starmer as UK economy to be 'closer to Guyana than US'

       244 Comments

       Rachel Reeves blamed for Boxing Day sales damp squib with shoppers 'reluctant to spend'

       82 Comments

       Rachel Reeves savaged over disaster budget as UK growth screeches to a halt

       990 Comments

       Boxing Day sales: Can retailers recover from Labour's Budget raid on consumer confidence?

       Comments

       Rachel Reeves urged to boost Christmas bonus for OAPs after winter fuel cuts

       117 Comments

       I've been counting Labour's lies and it's even worse than I thought - it won't stop either

       1272 Comments

       Rachel Reeves voted ‘worst politician of 2024' as shock voice says "I'd be getting rid"

       281 Comments

       Rachel Reeves humiliated as Chancellor on verge of breaking her own spending rules

       138 Comments

       Rachel Reeves's bombshell Budget has stifled economic growth: report

       717 Comments

       Labour accused of plunging UK into recession as business bosses tear into Rachel Reeves

       443 Comments

       Rachel Reeves set to break another promise after tanking economy with Budget

       325 Comments

       Rachel Reeves' Budget slammed again amid gloomy economic outlook

       13 Comments

       Rachel Reeves is dragging the UK back to the 'dark days' of the 1970s

       52 Comments

       Keir Starmer on collision course with ballooning public sector workforce over pay

       162 Comments

       'There is no growth!' Nick Ferrari skewers Labour minister in furious LBC clash

       836 Comments

       POLL: Should Keir Starmer sack Rachel Reeves?

       117 Comments

       Lucy Powell admits there will be 'consequences' in dire economic warning

       66 Comments

       Andrew Neil's damning eight-word verdict on Labour after UK economy flatlines

       100 Comments

       ￡356 cost of living warning issued to UK households for 2025

       Comments

       Voters not sure Keir Starmer will even last another year as Prime Minister

       81 Comments

       “But this Budget is as much on him as it is her - it’s the bad choices he signed off that are causing the economy to tank.”

       The Treasury has been approached for comment.