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Rachel Reeves in the United Kingdom lasted $ 70 billion ($ 95 billion) in public spending, when he was financed by the British business, mostly was funded.
Times have changed, however, and Reeves try to balance books and non-negotiable “Fiscal rules” – while tracking Expenditure on public services Between an uncertain economic view – it may not be possible, but no more tax rise.
In the spring, the treasure had about £ 9.9 million “head-room” to achieve the goal of the main head of the head tax, rather than loaning tax receipts.
Since then, economic and prosecutor has been challenging, but more vulnerable tax payments to debt has been weaker than expected to reconcile with lower economic growth expectations.
Budget Liability Office (OBR) said In March In 2026, the increase of 1% increase in 1% increase in 2026. The OBR is evaluating the UK fiscal and fiscal advertisement that evaluates government budgets, to see or lose their prosecutors.
The prediction of final growth is optimistic, if economists reviews the 2026 forecasts, it would leave a large tooth – not completely cleaned – if the government’s head office is not a fiscal room.
This means that the government has three options: cut, borrow or rise in taxes.
This year later, tax increases are increasingly essential, economists say, with Reeves already Commitment to encouraging public services and key budgets In the expenditure review on Wednesday, the expenditure of the day of the day of the day will not be financed on loan.
Taxes change ‘Gnat’s whisper’
“We believe that the government’s” header “is completely evaporated and the tax rises seeming to be increasingly essential,” said James Smith, the economist developed by the ING in the comments sent.
The announcement was reviewed by the 2026 growth forecast until 1.5% for 2026, which would already reduce the ceramic mental room of the government.
“The study of our scenario shows, as a result of two billion books, and perhaps the turns of the work forecasts are more pronounced. That’s the wider tax and expenditure pressure in front of the chancellor,” he added.
Asking the news of heavenly needs to raise more than this year, Reeves reluctantly responded to the question, saying “he would not write budgets for the future”.
“I don’t write another four years before the budget budgets first year of this government,” said the announcer, even though the “very wise world is very wise”.
Those comments came after the pity after his spending review The monthly monthly monthly data made on Thursday, Thursday, the UK economy fell by 0.3% on April every monthTrade rates and reeves with departure caused by the tax rise presented.
Rachel Reeves Kantzillo 10 leaves Downing Street before PMQS, at Commons’ house, UK, June 11, 2025.
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No economic predictions nor public finances also improved last year, director of Paul Johnson, the Institute of Fiscal Studies, but “reverse”.
“Reves crossed all his toes and all the toes, hoping that the obr will not establish autumn.
“No one should hesitate to take the rectors and balance actions.” He added the after-expenditure review study, “Fiscal constraints are very real and we cannot be all we want.”
Life is more difficult for the treasure, to maintain balancing throughout the summer, the clouds form the growth of the country.
Tax hiking could occur
The government has made some pre-expenditure cuts. Such as pensioners’ winter fuel pay scraps.
Hardly and Reeves’ mantra with spending cuts will not be borrowed to finance the expenditure of the day, tax increases is its real choice.
This would break the commitment to avoiding more taxes, and broke a working party party, income tax, national insurance (Social Security) to raise the contributions or to climb VAT, added to most products and services.
Rachel Reeves Shadow Chancellor, Sir Keir Starmer and Leader Leader, Angela Rayner, goes to the launch commitments to launch commitments, May 16, 2024 Purfleet, UK.
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Labor Party Insiders are now afraid of speculation, in order to land the tax hike, Mujtaba Rahman, General Manager of Eurasia Group, stated Thursday.
“The easiest tax career is that labor manifests are not income taxes, national insurance or VA (Prime Minister).
Reeves will probably scrabble with smaller scale rises. For example, spreading current freezing in income tax bonuses and thresholds from the other two to 2030, he said.
Other options include high-winning pensions tax relief, £ 3 billion in the game industry, based on the cost of ownership of 1991.
“For Reeves, no easy answer will be to add their amounts to the question,” Rahman said.
