Rachel Reeves has six weeks to come up with a plan to fix the UK’s ailing public services, deliver an economic boost and lift the dour national mood — and all without blowing up the nation’s finances.

A group of economists wants Reeves to raise public investment – but her plans so far point to a tight squeeze on spending.

Rachel Reeves has been warned that expected tax rises in October’s Budget could damage growth, after suprise new figures showed the economy flatlining. Economists said there could be further misery ahead as a result of the chancellor’s decisions and higher energy bills this winter.

British government debt hit 100% of economic output for the first time in recent history and there was another large budget deficit last month, adding to the problems for finance minister Rachel Reeves as she readies her tax and spending plans.

Rachel Reeves will raise taxes by up to £16 billion in the autumn Budget to avoid inflicting austerity cuts on Britain’s public services, economists are predicting. They believe the Chancellor may hike inheritance tax,