Rachel Reeves is ‘planning to raise taxes and cut spending’ in October budget after gov borrows £3bn more than forecast

RACHEL Reeves faces being plunged into a tax-rising and spending squeeze Budget nightmare as borrowing last month jumped £3 billion higher than predicted.

The Chancellor is walking a financial tightrope ahead of the October showpiece with the overshoot down to the cost of public services and benefits.

She is now considering raising more cash from capital gains tax and inheritance tax and pushing ahead with cuts to some Whitehall departments.