Resolution Foundation research director James Smith said Chancellor Rachel Reeves will need to meet the fiscal rules “or risk further market jitters”.
“While the chancellor is rightly focused on fleshing out her long-term strategy for economic growth, tough short-term decisions, including fresh tax rises or spending cuts, may also be needed in the coming weeks to demonstrate her commitment to sustainable public finances,” he added.
The government has already said it wants to cut down on “waste” and has said tax rises might be a possibility.
Reeves said in December departments would be asked to identify 5% “efficiency savings” as part of a review to set their budgets for the coming years.
“The chancellor has already shown that tough decisions on spending will be taken, with the spending review to root out waste ongoing,” a Treasury spokesperson told the BBC.
Meanwhile, Prime Minister Sir Keir Starmer did not rule out more tax rises when asked by the BBC in December.
“If you look at Covid and Ukraine, everyone knows there are things we can’t see now, but I can tell you our intention was to do the tough stuff in that Budget, not keep coming back,” he said.
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