Rachel Reeves has admitted new tax hikes will be coming as part of her Autumn Budget.
It is the first time the Chancellor publicly confirmed tax rises are on the cards in the Budget, which she is set to deliver on November 26.
Ms Reeves is set to arrive in Washington DC today for talks at the International Monetary Fund (IMF) after it warned UK inflation is set to surge to the highest in the G7 in 2025 and 2026.
She hinted that relaxing fiscal rules was not an option and that as a result, tax rises would be essential.
She told Sky News: "I won't duck those challenges.
"Of course, we're looking at tax and spending as well, but the numbers will always add up with me as chancellor because we saw just three years ago what happens when a Government, where the Conservatives, lost control of the public finances: inflation and interest rates went through the roof."
The Chancellor also took aim at Brexit, saying the impact of leaving the EU is "severe and long-lasting."
She added: "Austerity, Brexit, and the ongoing impact of Liz Truss's mini-budget, all of those things have weighed heavily on the UK economy.
"Already, people thought that the UK economy would be four per cent smaller because of Brexit.
"Now, of course, we are undoing some of that damage by the deal that we did with the EU earlier this year on food and farming, goods moving between us and the continent, on energy and electricity trading, on an ambitious youth mobility scheme, but there is no doubting that the impact of Brexit is severe and long-lasting."
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Mega-poll shows 'remarkable fall from grace' for Conservatives
A new mega-poll that puts the Conservatives on just seven MPs shows a 'remarkable fall from grace' for the Tories.
PLMR Chief Executive Kevin Craig told the Daily Mail: "The electorate is demanding action on the economy first and foremost, with concerns around immigration and the NHS still present.
"Traditional party loyalties are under unprecedented pressure."
WATCH: Tory MP for Harborough, Oadby and Wigston Neil O' Brien slams Rachel Reeves
Treasury official says Labour is doing 'everything we can' to bring down inflation
A senior Treasury official has told GB News Labour is doing "everything we can" to bring down inflation ahead of the Budget in November.
Chief Secretary to the Treasury James Murray told GB News: "I know people across country struggling to make ends meet and that's why for as a government we are doing everything we can to bring down inflation and put more money in people's pockets.
"Budgets always include positions on taxation and spending and for us, it includes growth...My job is to make sure we keep a tight grip on the economy."
Katie Amess accuses Keir Starmer of 'refusing inquiry' four years on from Sir David Amess's murder
Katie Amess has accused Sir Keir Starmer of 'refusing inquiry' four years on from the murder of her father, Sir David Amess.
Sir David, who was the Conservative MP for Southend West, was murdered by Islamist Ali Harbi Ali during a constituency surgery in 2021.
Mel Stride hits out at Labour's 'doom loop' politics
Sir Mel Stride has warned that Labour has plunged Britain into a "doom loop" ahead of November's budget.
The Shadow Chancellor said: "Rachel Reeves doesn’t need to raise taxes. She needs to get a grip of Government spending, including the welfare bill.
"Be in no doubt, this tax doom loop is down to the Chancellor’s economic mismanagement.
"Under Rachel Reeves we have seen inflation double, debt balloon, borrowing costs at a 27-year high, and taxes up, with more pain on the way in the autumn."
New mega-poll has Reform set for the biggest Commons majority in modern political history
Reform UK would win the biggest political landslide in modern British political history, according to a bombshell new mega-poll.
In the new poll, Nigel Farage's party would win 445 seats, with Labour down to 73 MPs and the Conservatives almost wiped out on just seven MPs.
The Liberal Democrats would also suffer heavy losses, down to 42 MPs from 72.
It is the first poll to include Jeremy Corbyn and Zarah Sultana's Your Party, with the insurgent hard-left party on 13 seats.
The SNP would see gains, going from nine MPs to 41, with the Green Party going from four MPs to six.
The seat-by-seat MRP poll was carried out by communications firm PLMR with Electoral Calculus, reports the Daily Mail.
Conservative shadow minister said he 'doesn't buy for a second' Labour's immigration plans
Neil O'Brien hit out at Labour this morning
|GB NEWS
A senior Conservative shadow minister said he "doesn't buy for a second" the Government will get tough on immigration.
Neil O'Brien, the MP for Harborough, Oadby and Wigston told GB News Breakfast: "It's just tough talk and no substance."
Royal Mail fined £21 MILLION by watchdog over millions of late letter deliveries
Royal Mail has been fined £21million for missing its annual first and second class mail delivery targets.
Millions of letters arrived late across the UK, leading to Royal Mail being slapped with the third-largest fine ever imposed by Ofcom.
The delivery giant delivered 77 per cent of first class mail and 92.5 per cent of second class mail on time during the 2024-25 financial year, Ofcom found.
Keir Starmer and Kemi Badenoch to go head-to-head for first PMQs since conference season
Sir Keir Starmer and Kemi Badenoch will be facing off for the first Prime Minister's Questions for the first time in more than a month.
As Parliament returns to normality from recess, we'll be bringing you the live updates across GB News, both here on the live blog and on PMQs Live.
Gloria and Chris will be joined from 12pm by Labour MP for Bassetlaw Jo White and Reform UK councilor Laila Cunningham.
Shabana Mahmood to admit UK has lost control of its borders
Small boat crossings have surged under Labour
| PAHome Secretary Shabana Mahmood is set to tell a summit of her international counterparts that failures on migration are eroding trust in politicians.
Ms Mahmood is hosting a summit of interior ministers from the Balkans in London later today.
She is expected to say "failure to bring order to our borders is eroding trust not just in us as political leaders...but in the credibility of the state itself."
Nigel Farage eyes up by-election bonanza as 10 seats up for grabs on Super Thursday
A bumper set of 10 local by-elections is taking place across the country tomorrow, as a series of tight electoral battles will provide tests for all the major party leaders.
There are four Liberal Democrat defences, two Labour defences, one defence each of the SNP, Greens, Conservatives and a local party.
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