INSTANT VIEW-Britain's finance minister vows to do what is necessary in Nov budget

LONDON, Nov 4 (Reuters) - British finance minister Rachel Reeves on Tuesday framed her second annual budget as one of "hard choices" to secure public spending while reducing Britain's debt, signalling possible broad tax rises to avoid a return to "austerity".

Reeves, in a rare pre-budget speech, added that while progress had been made, "there is more to do."

Britain's 10-year borrowing costs trimmed earlier falls after Reeves started speaking, but were last down nearly 2 basis points at 4.42%. GB10YT=RR

Sterling was 0.33% lower at $1.30945 GBP=. London's FTSE-100 index was down 0.7%, but not much moved from where it was before Reeves started speaking.

COMMENTS:

KIT JUCKES, HEAD OF CURRENCY STRATEGY, SOCIETE GENERALE, LONDON:

"She (Reeves) is justifying tough decisions to come in the budget. The fact that this is happening at all means that manifesto pledges will be not be followed to the letter.

We're going to have higher taxes.

The only thing has not prevented Sterling falling is that we haven't had lower rates

This is a budget that is intended to deliver lower interest rates, that is the whole plan here. If Reeves get that we will get lower rates and a weaker pound."

HENRY COOK, SENIOR EUROPE ECONOMIST, MUFG, LONDON:

"She's (Reeves) clearly laying the ground for tax rises, and setting out the context there."

"I think from the market's perspective, she continues to make the right noises. She says the decisions will be focused on keeping inflation falling - the conditions for interest rate cuts - and says there's an iron clad commitment to the fiscal rules, but I think the devil will be in the detail.

It is also notable she said the government will be committed to reforming the welfare state."

JAMES ROSSITER, SENIOR GLOBAL STRATEGIST, TD SECURITIES, LONDON:

"At the end of the day, she (Reeves) wants to get debt down and she doesn't want to cut spending, so there's only one option and that is to raise taxes.

The OBR forecasts will evolve in the next few weeks, and, in fairness to her, she has not made final decisions, but she knows she doesn't have many options here.

She would not reiterate the manifesto pledges at all, so that means she is keeping options open.

This is also ahead of the BoE meeting so their view is out in the public. We think the BoE will cut rates on Thursday.

This should be treated as a dovish speech but markets are expecting this and have largely taken it in their stride."