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Chancellor Rachel Reeves is heading toward a series of “impossible” decisions in this year’s budget, according to a leading think tank, as she grapples with tight fiscal constraints and mounting spending pressures.
The Institute for Fiscal Studies (IFS) warned that the government has little room to maneuver without raising taxes, cutting spending, or breaching its fiscal rules. With public services under strain and calls growing for increased investment, Reeves faces a difficult balancing act between economic credibility and political expectations.
The IFS said the upcoming budget will be a key test of the new Labour government’s economic strategy, with tough trade-offs likely to define its early tenure in office.
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