Rachel Reeves can be pressured to boost taxes if Labour rebels vote down the Authorities’s flagship welfare reforms, economists have warned.
The Chancellor’s £9.9bn of fiscal headroom left in her Spring Assertion can be worn out if the Invoice is defeated in a Commons vote on Tuesday.
Ms Reeves could be pressured to both elevate taxes additional, make spending cuts elsewhere or resort to greater ranges of borrowing.
The Workplace for Funds Accountability estimates that the cumulative saving of the modifications to each incapacity advantages and incapacity advantages will whole £13.7bn by 2029-30.
Of that, some £9.2bn would stem from cuts to private independence funds, generally known as Pip. There was a fierce backlash from Labour MPs and a few 127 backbenchers have threatened to vote down the Invoice.