British finance minister Rachel Reeves is eyeing tax rises and spending cuts to a value of around 40 billion pounds ($52 billion), two government sources said, after she was quoted as saying there was a "big gap" to be filled in the budget.

Rachel Reeves is aiming to raise £40 billion in tax rises and spending cuts in the Budget, it has emerged. The chancellor hopes that filling Treasury coffers with the huge sum will avoid a return to the austerity of the Tory years.

Filling the £22bn financial "black hole" would only be enough “to keep public services" still, she told a meeting.

Chancellor Rachel Reeves is looking into implementing up to £40billion in tax rises and spending cuts in the upcoming Budget, as the Government aims to avoid a return to austerity. The Treasury has identified a larger funding gap than previously reported,

The Chancellor told ministers on Monday that plans to fill a £22 billion black hole would be enough only to ‘keep public services standing still’.