UK Chancellor Rachel Reeves faces a £51 billion fiscal shortfall ahead of the autumn budget, according to the National Institute of Economic and Social Research (NIESR). The government is under pressure to meet self-imposed borrowing rules, but options to close the gap are constrained. Economic experts warn that to address the budget deficit, tax increases are likely, potentially including a rise in income tax by 5 pence in the pound and new taxes on private health, which could generate up to £4 billion annually. These measures would mark a departure from Labour's previous election promise not to raise taxes on working people. The fiscal challenges are compounded by high borrowing costs and sluggish economic growth. The tax increases have already impacted the labor market, with UK employers cutting back hiring and slowing pay growth amid concerns over labor and tax costs. Retailers such as Iceland have attributed recent price rises to the tax hikes. Discussions are also underway about adopting policies to save over £20 billion annually, including changes to quantitative easing reserves interest. The government faces a difficult balancing act between meeting fiscal targets, maintaining spending promises, and limiting the tax burden on working citizens.