On Wednesday we had the Spring Statement by the chancellor Rachel Reeves. However the general response has been somewhat underwhelming by most pundits, including the influential Institute of Fiscal Studies (IFS).They are of the opinion that she will probably need to come back in the autumn and increase taxes, in order to stay within her self imposed fiscal boundaries. Her headroom is relatively small at £9.9 billion and can been thrown off balance very easily. In addition the economy is hardly moving very fast and the need for increases in productivity are not looking too optimistic. Also the future is uncertain and Donald Trump could easily throw a - spanner in the works. So all in all things are not looking very promising. There is the elephant in the room - which is the - welfare state and limiting claimants. This could be her biggest political challenge.
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