Autumn Budget: Think‑tank warns Rachel Reeves must raise taxes to close £41 Billion UK budget gap

NationalWorld.com

Brace yourself for potential tax hikes this autumn! A leading economic think tank is warning that Chancellor Rachel Reeves may need to raise taxes to stay within borrowing limits.   The National Institute of Economic and Social Research projects the government will overshoot its fiscal targets by a significant margin. They suggest moderate tax increases, including council tax reform, to bridge the gap.   Other potential revenue-raising measures include broadening VAT, adjusting pensions, and extending the income tax threshold freeze. Will the government heed the warning?   #UKBudget #TaxReform #EconomicForecast

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00:00Taxes will need to rise this autumn if Chancellor Rachel Reeves is to stick to her own borrowing

00:04limits, an economic think tank has warned. According to the National Institute of Economic

00:09and Social Research, the government is on course to overshoot its fiscal targets by

00:14$41.2 billion. The think tank recommended a moderate but sustained increase in taxes,

00:21including a reform to the council tax system, to help close the gap. While the government

00:26responded by saying that the best way to strengthen public finances is through economic growth,

00:30the Conservatives accused Labour of habitually resorting to tax increases. The think tank,

00:36which is independent of any political affiliation, also suggested potential revenue raising measures

00:42such as broadening VAT coverage, adjusting pensions allowance and extending the current

00:47freeze on income tax thresholds beyond 2028.

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Autumn Budget: Think‑tank warns Rachel Reeves must raise taxes to close £41 Billion UK budget gap

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Autumn Budget: Think‑tank warns Rachel Reeves must raise taxes to close £41 Billion UK budget gap