Rachel Reeves could raise £45bn in taxes and keep promises, report says

Chancellor has ways to cover UK deficit without breaching spirit of Labour manifesto, Morgan Stanley claims

Rachel Reeves could raise as much as 45bn in taxes without breaking Labour's manifesto promises, according to a City report.

Economists at the US investment bank Morgan Stanley said they expected the chancellor to use next month's budget to announce billions of pounds in tax increases to cover a potential 30bn shortfall in the public finances.