Rachel Reeves should tweak fiscal rules to ease pressure, IFS says July 21, 2025 Chancellor Rachel Reeves should bring forward a change to fiscal rules to ease pressures faced at spring fiscal events, a leading economics think tank has urged. In a new briefing on public finances, the Institute for Fiscal Studies (IFS) said Rachel Reeves should refrain from changing the number of times the Office for Budget Responsibility [...]
OBR chief says higher tax is ‘not good’ for growth – or the government July 15, 2025 Chancellor Rachel Reeves risks harming the UK economy’s potential to grow by inflicting extra tax hikes on Brits, the fiscal watchdog has warned, adding that the government risks losing out on returns in the longer run. Rachel Reeves looks poised to raise taxes at this year’s Autumn Budget as leading City analysts believe the higher [...]
Wealth tax would be ‘own goal’, London bosses warns July 10, 2025 The introduction of a wealth tax on Brits would yield less revenue for the government and drive investors overseas, bosses across London have warned. Keir Starmer this week refused to answer questions on whether the government was considering a wealth tax, which was mooted by former Labour Party leader Neil Kinnock last weekend. But business [...]
Wealth and stealth: Starmer eyes fresh tax hikes July 9, 2025 Keir Starmer has refused to rule out a wealth tax or so-called stealth taxes, a day after the fiscal watchdog said unfunded spending commitments on welfare put the public finances under intense pressure. The Office for Budget Responsibility (OBR) gave a damning verdict of the state of public finances in a comprehensive report published on [...]
Labour’s welfare U-turn spikes fears of tax hikes June 27, 2025 The Labour government has confirmed its latest U-turn with a significant retreat on welfare reform dealing a crushing blow to Rachel Reeves’ waning fiscal headroom. The bill initially targeted restrictions on personal independence payments (PIP) and limited the sickness-related element of universal credit in a bid to shed £5bn from the welfare budget by 2030. Under [...]
Berenberg: Labour welfare row will lead to tax hikes and higher interest rates June 26, 2025 Divisive party politics at the top of the Labour government stand to prevent the Bank of England from making further interest rate cuts, given struggles to curb spending, a leading City broker has warned. The government is embroiled in another row over spending cuts, as £4.8bn in welfare budget savings look set to be watered down following a [...]
Higher tax ‘inevitable’ as PM makes defence spending pledge June 24, 2025 Keir Starmer’s fresh commitment to ramp up defence spending to five per cent as a share of GDP by 2035 will almost certainly have to be funded by more tax hikes, the Institute for Fiscal Studies (IFS)’ Paul Johnson has warned. The government’s pledge to spend 3.5 per cent of GDP on defence and a [...]
Brits to spend half a year waiting for Tax Freedom Day after Labour tax hikes June 12, 2025 Tax Freedom Day is set to be on the latest ever date within a matter of years, fresh research has revealed, with Chancellor Rachel Reeves showing no signs of cutting taxes in the near future, given inflated spending. Reeves unveiled billions more cash to be injected into several departments at yesterday’s Spending Review while funding [...]
Nato to pressure UK to spend 3.5 per cent on defence June 3, 2025 The UK will have to spend 3.5 per cent of GDP on defence by 2035 as part of a new Nato demand, according to reports, stretching government expenditure far beyond the current 2.5 per cent commitment made by Keir Starmer. The Labour government has agreed to increase defence spending to 2.5 per cent from 2027, [...]
Reeves’ spending review ‘natural point’ to boost defence -IFS June 1, 2025 The Chancellor’s upcoming spending review provides a “natural point” to put the UK on the path to further boost defence spending, an economic think tank has said. Defence and NHS spending will dominate the review, the Institute for Fiscal Studies said in an analysis. It said Rachel Reeves will face “unavoidably” tough choices on 11 [...]