More spending and tax hikes expected in Britain in the Labour government’s first budget

Associated Press

LONDON (AP) — British Treasury chief Rachel Reeves is set to deliver her first budget in Parliament. It’s a tightrope act that aims to find billions for investment through borrowing and tax hikes, without roiling businesses or raising taxes on working people. Reeves will present the budget on Wednesday — the first by a Labour Party government in almost 15 years and the first ever delivered by a female finance minister. Reeves pledged that the budget will put “more pounds in people’s pockets” and get the economy growing. But the government has struck a gloomy note about the state of the public finances. Prime Minister Keir Starmer warned that the budget will reflect “the harsh light of fiscal reality.”