Rachel Reeves Faces Pressure Over Potential Future Tax Rises

The UK Chancellor declines to rule out further tax increases, citing economic uncertainties and geopolitical risks.

Chancellor Rachel Reeves has repeatedly refused to guarantee no further tax rises or borrowing, despite previous assurances to business leaders.
Economists warn that Reeves's fiscal headroom is minimal, with potential risks from inflation, geopolitical tensions, and rising borrowing costs threatening her fiscal targets.
The Organisation for Economic Co-operation and Development (OECD) has suggested that additional tax measures may be needed to ensure the UK’s fiscal sustainability.
Reeves maintains that she will not repeat the £40 billion tax hikes from October’s Budget but acknowledges that public services must operate within tight spending limits.
Critics, including opposition MPs and business leaders, argue that the lack of clarity on future tax policy is undermining confidence in the government’s economic strategy.