Reeves prepares for tax rises in budget as global and domestic pressures bite

Rachel Reeves put the country on notice that tax rises are coming in her Budget, saying "each of us must do our bit".

The Chancellor declined to recommit to Labour's manifesto commitments not to raise income tax, national insurance or VAT, saying "we will all have to contribute".

She blamed global problems including the tariff war triggered by US President Donald Trump and domestic issues including the budget watchdog's expected downgrade of economic productivity for the "hard choices" she will make.

Ms Reeves took the unusual step of delivering a speech three weeks ahead of her Budget to prepare the ground for the expected tax increases she will announce.

Speaking in Downing Street she said: "As I take my decisions on both tax and spend, I will do what is necessary to protect families from high inflation and interest rates, to protect our public services from a return to austerity and to ensure that the economy that we hand down to future generations is secure with debt under control.

"If we are to build the future of Britain together, we will all have to contribute to that effort.

"Each of us must do our bit for the security of our country and the brightness of its future."