China News Agency, Beijing, November 1st. London news: According to Reuters and Sky News, the British think tank "Resolution Foundation" pointed out on November 1st that despite the tax cuts of former British Prime Minister Truss There has been a sharp turn, but the UK still faces a £40bn ($46bn) budget gap that needs to be filled with tax increases and spending cuts.
James Smith, the foundation's research director, said that while the recent focus has been on improving economic conditions in the "post-Trust era," the core issues remain weak growth, rising borrowing costs and costly tax cuts that have led to There is at least a £40bn financial gap to fill.
The foundation estimates that at least £30bn in tax hikes and spending cuts will be needed to ensure that the debt-to-GDP ratio falls by the 2026-2027 financial year.
The foundation said the chancellor's "menu" of options included cuts to investment spending, which could save £10bn but could have a detrimental impact on growth.
The government could also opt for an "austerity package" that cuts already strained sectoral budgets.
Government sector budgets are already falling in real terms as inflation in the UK hits its highest level in 40 years.
The UK government could also save £9bn if it didn't raise benefits and pensions in line with next year's price hikes, research suggests.
The UK's autumn budget, originally scheduled to be released on October 31, has been delayed until November 17.
There is also the potential for further contraction in public services, but those measures are limited, Smith said.
That means the fall budget is likely to involve tax increases, not just spending cuts.
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