Chancellor tells Treasury select committee ‘we’ve now set the envelope for spending for this parliament’

Rachel Reeves has committed not to increase taxes at Labour’s next budget and said the government would need to “live within the means” of her spending plans if public services came under mounting pressure.

After announcing the biggest package of tax rises in three decades in last week’s budget, the chancellor dismissed suggestions that she would need to find additional money by the spring to repair battered public services.