Pensioners and the rich could face a RAID shock tax from Rachel Reeves In October, as desperately trying to balance books, they warned the leading economists.
It comes in the focus of concern that the chancellor did not leave enough for the head in finances to withstand the challenges in the economy.
Especially threat of Donald Trump imposes a wide ranging tariffs At the top 20 percent, he announced in the import of cars on Thursday would leave MS Reeves with a black hole.
Paul JohnsonThe director of the High Proputing Office for Fiscal Studies (IFS), said the post-spring who chancelled that the chancellor left the exposed to lower changes in the forecast and warned that it would be a “good chance” in its autumn budget.
Mr. Johnson said worried pensions “looks like a juicy place for a lot of money.”
“It risks the months of speculation over what you can be a tax rise can be – attacking pensions, tax on the richest, another tax on capital gains tax?”
He warned that “mere speculation about the increase can cause economic damage.”
Dear Economist Proposal would help Ms. Reeves increase anger among working representatives and unions over 4.8 billion warnings that its measures will leave the poor £ 500, instead of placing the people.
Such was a political rage due to the impact of reducing compensation and loss of money for carers that works and pensions Minister Stephen Timms was forced to respond to the emergency question in Commons on the issue on Thursday.
Left from the working side and trade unions called on a certain wealth tax to be installed in books, not to put it on the back of the poorest in society.
But speaking at a press conference in Paris, Prime Minister Sir Keir Sturmer resisted that he claims future taxes without completely.
He said, “We did not raise tax in the spring statement and I think I have done at every press conference before yesterday,” you will have to gather tax in the spring statement, isn’t you? ” “And I said,” Wait a spring statement. “We got a spring statement and we didn’t,”
He pointed out that this work promised not to collect income taxes, VAT or employees in the national insurance contribution during the election and has not yet done it.
“We kept ourselves to those promises,” he added.
“Apparently I won’t write future budgets, every Prime Minister and Chancellor took that position, but if you look at the fact that we didn’t raise taxes that indicates that it points to me.”
The warning over the potential tax rais has occurred as Donald Trump announced tariffs by 20 percent on cars exported to the United States with a threat to multiple imposed on Wednesday. The Budgetary Responsibility Office has already warned that American tariffs could delete 10 billion teams / Masses.
And with doubt growing over Mrs. Reeves’ plans, the former Tory Office Ken Clarke It also suggests that the Chancellor will have to increase the income tax or value added tax (VAT) In October.
He said he worked that he would increase VAT on Wednesday, adding, “I think he has to go on a value added tax or some income tax in fall, probably VAT.”
IFS also warned that new official data show a dramatic drop in living standards in the last year.
In 12 months until March last year, the real average household income dropped by 2 percent, Think Tank said, implying that there was no revenue growth from 2016. years.
Ms. Reeves denied that there would be a further tax or spending a decrease in the budget in the fall, but he stopped entirely judging them.
He asked whether he would have to return with more reduction or tax rises, she said, “No.”
But pressed whether it would mean that she could exclude these measures, she replied: “What I say is that there are many things that the government is doing in the fact that the government is to grow.”
Meanwhile, the backlog has grown against the decision of Mrs. Reeves to cared for their own assessment of the government’s performance that 250,000 more people would put in poverty, including 50,000 children.
Resolution Foundation argued: “The combination of weak economic prospects and fees that is disproportionately on the families of lower income means that the living standards in the next five years are for the poorest half of households on average, in accordance with the remodel analysis of the Foundation for Resolution 2025.”
However, Mrs. Reeves told Sky News: “I am absolutely sure that our reforms will instead of pushing people in poverty, encourage people to work.
“And we know that if you move from well-being into the business, it is much less likely to be in poverty.
“It’s our ambition, making people not to be bad, and at the same time, the state of well-being will always be there for people who are truly needed.”
Separate numbers published on Thursday showed a new record number of children living in poverty in the UK.
Data published by the Ministry of Labor and Pensions have shown that there will be in relative low-income households, after being in 2024. year and the largest number of 4.33 million, and the highest person of comparable records in the UK began in 2002/03.