What's happened
Labour's upcoming autumn Budget is expected to include painful tax rises and spending cuts to address a £22 billion shortfall. Chancellor Rachel Reeves has confirmed the need for new revenue measures, while the Scottish Government faces delays in infrastructure projects due to financial constraints.
Why it matters
What the papers say
According to The Independent, Chancellor Rachel Reeves has stated that Labour's first autumn Budget will be 'painful,' with tax rises necessary to fill the government's financial shortfall. This sentiment is echoed by Keir Starmer, who emphasized the need to address the £22 billion deficit left by the previous Conservative government. Meanwhile, The Scotsman highlights the dire financial situation in Scotland, where the SNP has had to halt vital infrastructure projects due to budget constraints. The article notes that the A9 dualling project, crucial for road safety and economic growth, is among those at risk of further delays, raising concerns about public safety on single-carriageway sections.
How we got here
The Labour government is grappling with a significant public finance shortfall, attributed to previous Conservative policies. This has led to the cancellation of key welfare programs and infrastructure projects, prompting the need for a stringent Budget in October.
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