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UK's Reeves says higher taxes and borrowing not good for extra defence spending
She said the government should focus on spending efficiency after calling the 10-year defence plan a priority, while ruling out higher taxes or borrowing.
- Chancellor Rachel Reeves ruled out raising taxes or increasing borrowing to fund higher defence spending while attending the International Monetary Fund summit in Washington, emphasizing fiscal prudence.
- Pointing to the Iran conflict, the Chancellor warned that government debt servicing now consumes one in every £10 spent, making additional borrowing counterproductive and further tax rises undesirable.
- The Government is developing a 10-year defence investment plan, with Reeves arguing the focus should be on how money is spent rather than the "quantum" of cash to meet national security needs.
- Labour Cabinet minister Reeves insisted she had "provided the biggest uplift of defence spending since the end of the Cold War," following former defence secretary Lord Robertson of Port Ellen's strategic review.
- Both the NHS and defence budgets saw significant uplifts in last year's spending review, demonstrating Reeves's willingness to make difficult choices while protecting the country within existing fiscal constraints.
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19 Articles
19 Articles
Evening Standard+13 Reposted by 13 other sources
Chancellor would ‘prefer not’ to hike tax again, amid calls for defence cash
The focus should be on how money is spent rather than on the ‘quantum’ of funding, Rachel Reeves said.
·London, United Kingdom
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Rachel Reeves Highlights Dilemma of Defense Spending Without Raising Taxes
British finance minister Rachel Reeves expressed her reluctance to fund increased defense spending through tax hikes or borrowing, preferring to avoid further tax increases despite rising debt interest costs. Her comments were made during the IMF and World Bank spring meetings in Washington.
·India
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Coverage Details
Total News Sources19
Leaning Left4Leaning Right0Center12Last UpdatedBias Distribution75% Center
Bias Distribution
- 75% of the sources are Center
75% Center
L 25%
C 75%
Factuality
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