Tax rises ‘inevitable’, experts warn after borrowing soars in another blow for Reeves
Chancellor Rachel Reeves, unexpectedly, took another blow after led to warnings that the high borrowing figures of the high borrowing figures appear to be “inevitable” in the budget of November.
According to the National Statistics Office (Ones), the highest August borrowing for five years has left the estimated £ 3.5 billion more than August 2024.
According to Ones, the interest rate of the state debt, MS Reeves’ controversial national insurance tax raid, eliminated any increase in last year’s budget.
Martin Beck, the chief economist of the WPI strategy, a research and policy firm, said, “In March, the crowded chancellor against the key financial rule went almost absolutely absolutely. This means that the tax increase in November seems inevitable.”
The chancellor has already admitted that the economy did not work well enough ”because he took a“ strict concept ında on spending when he delivered his budget on November 26th.
Even before this last coup, Independent It was said that he was thinking of a new tax raid by collecting the capital income tax and bringing a gambling tax to help to close the estimated black hole in his budget.
Aj Bell Investment Director Ruses Mold said: “New figures show that public finance is worse than expected, after showing that the alarm bells are stealing. This says something that the expectations are already a rock dip.”
“Chancellor makes Rachel Reeves’ black hole plug and increases the possibility of disturbing decisions in the budget of November.”
Pantheon macroeconomic senior economist Elliott Jordan-Doak, so far the borrowing figures are “ugly ve and Mrs. Reeves’ task is much worse, he said.
He said: “Today’s figures show that the chancellor should increase more than £ more than £ 20 billion we had previously predicted.
“We expect the chancellor to fill with a Smorgasbord, the financial hole, and the increases of sin tax with some smaller spending cuts.”
The new figures have shown the highest August borrowing since 2020 and significantly exceeded £ 12.8 billion expected by most economists. Most importantly, it was £ 5.5 billion higher than the British Budget Responsibility Office (OBR), the independent financial observer of the UK in March.
Later in this year, OBB’den estimates the state of the economy, Mrs. Reeves will tell how much space for maneuver in the budget.
The Treasury Chief Secretary James Murray insisted that the government should be spent on the priorities of the country, not the debt interest, but to the priorities of the country.
“Our focus is economic stability, financial responsibility, unnecessary bureaucracy rupture, tearing of waste from our public services, direct reforms and putting more money on the pockets of employees,” he said.
Ones said that in recent months, borrowing forecasts were revised about £ 6 billion higher after determining that VAT receipts were lower than the first thought.
Throughout the summer, the National Economic and Social Research Institute, a leading economic thought -tank, warned Ms. Reeves that she should face the rules of admiral ship borrowing to fill the black holes that Ms. Reeves faced a “impossible trilemma ve and to fill the 50 billion pounds of labor.
The government’s embarrassing climbing to the planned welfare cuts saw that Labour’s benefit reforms almost completely courage, and the savings of the bill fell from £ 5 billion.
