UK Chancellor of the Exchequer Rachel Reeves is facing a £51 billion shortfall in public finances that must be addressed in the upcoming autumn budget, according to the National Institute of Economic and Social Research (NIESR). This fiscal gap is driven by high borrowing costs and sluggish economic growth. Reeves is confronted with a challenging budget trilemma: she aims to meet her self-imposed fiscal rules, but options for raising taxes and cutting spending are limited. The think tank warns that tax increases, potentially amounting to around £40 billion, may be necessary, despite Labour's previous election promise not to raise taxes on working people. Proposals under consideration include a possible 5 pence increase in income tax and measures to save over £20 billion annually by adopting policies such as interest on quantitative easing reserves. The government also plans to achieve savings of €2 to €2.5 billion per year from 2026 to 2029 in unemployment insurance, reflecting broader efforts to reduce public spending. Reeves hopes that framing tax rises as a fairness measure will mitigate public backlash, but concerns remain about the economic impact, including rising prices at retailers like Iceland. The fiscal challenges have sparked debate about the sustainability of the government's financial strategy and its potential effects on the UK economy.