John Healey has been warned that further tax rises in his Budget next month could stifle economic growth because the public has not lowered its expectations about “what the state can do for them”. Professor David Miles, a senior economist at the Office for Budget Responsibility, said people were not ready for spending to be cut on public services. The warning, a month before Healey delivers his first Budget, is all the more significant because the OBR’s forecasts underpin the Chancellor’s plans for the public finances, and will put further pressure on him to limit any increase in the tax […]