The respected think tank Institute for Fiscal Studies (IFS) has calculated that in order to fulfil the government's pre-election commitments, Chancellor Rachel Reeves would need to find billions of pounds extra.

The administration has pledged to increase government investment intended to spur the economy and to never again resort to "austerity" for public services.

However, the IFS added that in order to meet those obligations, the chancellor would have to "grasp the nettle" and find an additional £16 billion on top of the £9 billion in tax increases outlined in the Labour platform.

The chancellor is putting the last touches on her first budget, which will be unveiled on October 30.

Reeves will outline her strategy for fulfilling a number of manifesto commitments while balancing a maze of self-imposed debt, borrowing, and spending limitations.

It will be the government's first major event, a chance to clarify goals and principles and re-establish political harmony following criticism over contributions of clothing and lodging.

After the government's unexpected decision to restrict winter fuel subsidies to the lowest-income seniors, there is an assumption that higher earnings will bear a greater share of the tax burden. There are also others who wish to remove the cap on welfare payments for two children.

However, Reeves' first budget is set against a backdrop of increased debt resulting from the epidemic, increased interest costs associated with financing that debt, and inflation that has just now stabilised. Additional problems are posed by the elderly and expanding population as well as the changing environment.

In its routine pre-Budget study of the public finances, the IFS stated that the new administration had inherited an "unenviable" state of affairs with regard to the finances.

What taxes may be raised to close the deficit has been hotly debated.

Labour made a vow during the election to refrain from raising taxes on "working people" and to keep income tax, national insurance, or value added tax from rising.

Nonetheless, Prime Minister Sir Keir Starmer left open the possibility of a rise in employers' National Insurance contributions on Wednesday, sparking rumours that this would be a Budgetary move.

(Sources: bbc.co.uk)