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The Resolution Foundation also warned that the decision to frontload increases to spending on public services into this year and next means the Spending Review in the Spring will be tough.<\/p>\n
Reeves has also left herself with a “relatively slim margin of headroom”, it said.<\/p>\n
The chancellor’s new debt rule allows more room for manoeuvre but most of that money has already been used up, which means that even a small economic downturn could force the government to increase taxes further in the future, the think tank said.<\/p>\n
Opposition parties were quick to criticise Reeves, with shadow chancellor Jeremy Hunt saying she had taken the \u201ceasy route\u201d by \u201cpicking the pockets of businesses\u201d to fund public spending.<\/p>\n
He said the strategy would lead to \u201clower growth, lower living standards, lower wages, businesses employing fewer people.<\/p>\n
\u201cIt\u2019s businesses paying their taxes that pay for our public services and what we did not hear yesterday is a plan to grow the economy and that is what we need,\u201d he said.<\/p>\n
Liberal Democrats leader Ed Davey said the chancellor was repeating the mistakes of her Conservative predecessors.<\/p>\n
\u201cRaising employer\u2019s National Insurance is a tax on jobs and High Streets, and it will make the health and care crisis worse by hitting thousands of small care providers,\u201d he said.<\/p>\n
Speaking to reporters on Thursday, the Prime Minister, Sir Keir Starmer, said his government had taken a “responsible” approach in order to “fix the foundations” of the economy.<\/p>\n<\/div>\n<\/div>\n
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