Rachel Reeves to be hammered with new £20bn blow to the UK economy | Politics | News
Rachel Reeves’ economic nightmare will worse in November, because official estimators are expected to offer a new coup of £ 20 billion. Last month, the Budget Responsibility Office of the Office of the UK’s efficiency rate in the coming years was very optimistic and should be reduced in the next budget.
However, each decrease in the expected productivity increase would cost £ 9 billion above the other money that had to raise until November. This morning, a senior economist estimates that Obr will reduce the expected efficiency even more and that Rachel Reeves requires £ 15 to 20 billion more in his budget to balance books.
Oxford Economics’ British economist Andrew Goodwin said, “They will almost definitely drop him. [Some] £ 15 billion to 20 billion £ 20 billion is a reasonable basketball park.
“The motivation of doing this is that it is the most optimistic prediction of the consensus.
Matt Swannell from EY said: “Obr will reduce the increase in medium -term productivity growth estimate, which is a feature of its latest projections.
“It is understood that the increase in productivity can now rise below 1 year, which can face IMF and Bank of England up to approximately 1.25pc with the latest estimates. On its own, it can reduce its ceiling gap below 20 billion pounds.”
This coup would come up to billions of more in the tax increases expected to be announced.
Ms. Reeves is believed to be faced with a financial black hole £ 35 and £ 40 billion, which was warned that they will see that the British taxes have increased further.
After winning the election last year, Mrs. Reeves immediately broke the manifesto hostage to avoid increasing the national insurance, but promised to correct the chaos of the conservatives that was a ‘one -time’.
However, both the welfare cuts and a number of important U -turn on winter fuel cuts tried to find it more than 10 billion £ 10 billion.
An expected announcement about decreases in economic growth and the scrap of two children’s benefit limit will add more pressure on MS Reeves to increase taxes.
At the beginning of this week, at the Labour’s Party conference, Mrs. Reeves looked at his rivals left and insisted that he would not deviate from his financial rules, and insisted that it would result in Liz Truss -style economic melting.
However, Manchester Mayor and Leadership Agitator Andy Burnham faced intense pressure from the left to do so.
In the end, he still claims that he would promise not to increase the national insurance, VAT or income tax, probably seen that he has opened a rowing to other commitments.
“I think everyone can see that the world has changed last year and we are not immune to this change.
“We are not immune to any of these, whether wars in Europe and the Middle East, obstacles to trade or the global cost of borrowing due to tariffs from the United States.
“It is very important that we maintain these economic stability commitments, because we rely on the purchase of state debt to finance what we do as a country.
