Business
Chancellor refuses to rule out tax hikes in October Budget
John Healey detailed plans to spread growth more widely across the UK, ahead of his first Budget.
BBC Business•
Chancellor John Healey has refused to rule out tax increases in next month's Budget after acknowledging government borrowing costs are at "historic highs".
In an interview with the BBC, Healey said he wants people to feel "confident about Britain and our future".
But he said "times are tough", with Jaguar Land Rover (JLR) on Monday announcing 4,000 planned job cuts, mostly in the UK.
But recent ructions in government debt markets have piled fresh pressure on already-stretched public finances, with the Treasury needing to fill possible multi-billion pound gaps caused by rising borrowing costs and the need to fund higher defence spending.