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Economics

  • Brits back spending cuts over tax rises

    July 8, 2025

    Voters prefer spending cuts over tax rises, fresh polling has found, putting Chancellor Rachel Reeves at odds with an electorate that has become frustrated with her economic policies.  Rachel Reeves set spending pledges in stone in June when she confirmed Labour would boost day-to-day departmental and capital spending, with the NHS receiving a fresh three-year [...]

  • Rishi Sunak will donate Goldman Sachs salary to charity

    July 8, 2025

    Former Prime Minister Rishi Sunak has rejoined Goldman Sachs as a senior adviser, adding to post-government roles he holds while still sitting as an MP, though his salary from the investment banking giant will be donated to a maths charity. Sunak worked at Goldman Sachs as a summer intern in 2000 and as an analyst [...]

  • UK cannot afford triple lock pension, OBR says

    July 8, 2025

    The UK government cannot afford to keep the triple lock pension, the Office for Budget Responsibility (OBR) has warned.  Chancellor Rachel Reeves has faced staunch opposition from within her own party and seemingly from the wider electorate over cuts to welfare spending as she bids to meet fiscal rules that prevent high borrowing from further [...]

  • OBR warns unfunded spending to damage UK finances amid ‘daunting’ risks

    July 8, 2025

    The UK economy is set for a “daunting” year as the Office for Budget Responsibility (OBR) has warned unfunded spending commitments and global trade tensions are likely to damage public finances.  Chancellor Rachel Reeves is facing pressure to assuage Labour backbenchers by not cutting welfare spending while also upholding a pledge not to raise tax [...]

  • Charities ‘penalised’ by Rachel Reeves’ taxes   

    July 8, 2025

    Chancellor Rachel Reeves’ hike to employers’ national insurance contributions (NICs) has “penalised” staff at charities up and down the UK, a new study has suggested.  Rachel Reeves has reportedly suggested the £20bn tax raid on mid-sized firms was “low hanging fruit” to provide extra funding for the NHS and schools. But the collateral damage from [...]

  • A wealth tax would be a disaster – and an admission of total failure

    July 8, 2025

    Why wouldn’t Downing Street rule out a wealth tax? It isn’t difficult, you just say “we will not introduce a wealth tax” and the show moves on. Instead, when asked about the growing clamour in Labour circles for new tax aimed squarely at the well-off, Downing Street’s spokesperson simply talked about the need for “the [...]

  • Downing Street flirts with wealth tax despite exodus fears 

    July 7, 2025

    The UK’s unprecedented exodus of wealthy people could be set to accelerate after the government opened the door to introducing a wealth tax, following calls for such a move by former Labour Party leader Neil Kinnock and a host of union leaders. Chancellor Rachel Reeves has all but conceded that taxes will have to rise [...]

  • Personal guarantees ‘overuse’ holding UK growth back 

    July 7, 2025

    The “overuse” of personal guarantees in borrowing arrangements is holding businesses back and stifling UK growth, innovators have warned, with only a small minority of companies claiming they would borrow from banks with their personal savings or assets on the line.  A new survey of some 1,400 small business owners by the Federation of Small [...]

  • Scottish Widows owner: Pension funds deal risks making UK like China 

    July 7, 2025

    Labour’s flagship deal with pension funds risks making the UK economy more like China, the boss of Lloyds Banking Group has warned after its subsidiary Scottish Widows chose not to sign up to the agreement.  Chancellor Rachel Reeves won the support of 17 pension funds which agreed to invest at least five per cent of [...]

  • Get ready for £30bn tax raid, City analysts warn

    July 5, 2025

    Top City economists have warned welfare U-turns and President Trump’s damage to growth prospects will lead to tax hikes worth £30bn this autumn.  Chancellor Rachel Reeves suggested last year’s £40bn tax raid on businesses, homeowners and investors was a “once in a parliament reset” while Keir Starmer has suggested the UK could not “tax [its] [...]

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