Deutsche Bank: £10bn of tax hikes coming in Autumn Budget June 3, 2025 Chancellor Rachel Reeves is expected to raise taxes by at least £10bn in this year’s Autumn Budget as rising inflation and increased spending eat into the Treasury’s fiscal headroom. “With a tough Spending Review due in June, we expect fiscal news to worsen over the coming months,” said Deutsche Bank analysts in a research note. [...]
Environment secretary says Thames Water has ‘a number’ of options June 3, 2025 Environment secretary Steve Reed told LBC’s Nick Ferrari that there are “a number” of potential investors for Thames Water, just minutes after news broke that US private equity firm KKR had dropped out of a last ditch effort to save the embattled water giant. Reed had already been booked to appear for a ‘Call the [...]
Starmer’s defence pledges will trigger a tax bombshell June 3, 2025 Here’s a cracker of a pub quiz question for you: what links mega-rich non-doms, nuclear-powered submarines, congestion in Wigan and the Bank of England’s former chief economist? The answer, as so often appears to be the case, is tax. On the day that Keir Starmer unveiled a Strategic Defence Review that calls for nearly £70bn [...]
Starmer’s defence spending will mean ‘chunky’ tax rises, warns IFS June 2, 2025 Sir Keir Starmer’s plans to boost defence spending will require “chunky” tax rises, according to the chief of the Institute for Fiscal Studies (IFS). Paul Johnson told Times Radio: “…if we’re really going to spend another £10-15 billion a year on defence, whilst inevitably we’re going to spend more and more on health and pensions [...]
Majority of Labour MPs oppose Reeves’ fiscal rules June 2, 2025 Two thirds of Labour MPs oppose Rachel Reeves’ fiscal rules, and twenty percent would prefer tax rises over spending cuts. Polling by Survation, shared with The Times, showed that 64 per cent of Labour MPs said Reeves’ rules inhibit ministers’ abilities to meet their objectives, including: raising living standards, improving public services, and combatting climate [...]
Starmer refuses to commit 3 per cent defence spending despite ‘battle-ready’ claim June 2, 2025 Keir Starmer has been criticised for failing to commit to increasing defence spending to 3 per cent of GDP. The Prime Minister vowed to put in place the “largest sustained increase in defence spending since the Cold War,” with a 2.5 per cent share of GDP going to defence. However, the PM maintained that hitting [...]
Andy Haldane: Reeves ‘not even close’ on growth after ‘rookie errors’ June 2, 2025 The Bank of England’s former Chief Economist has slammed Rachel Reeves’ first near-full year as Chancellor as “disappointing”, with the government “not even close to doing enough” on growth. Less than two weeks out from the 11 June spending review, Andy Haldane told LBC’s Nick Ferrari that there have been “mistakes, rookie errors” that have [...]
Spending review: Government poised to boost NHS and defence sector June 1, 2025 The government’s spending review is likely to focus on the UK’s health and defence sectors, a report from the Institute for Fiscal Studies (IFS) suggests. The spending review, which will be published on 11 June, will allocate departmental funding and budgets for the next three to four years. It has been the subject of speculation [...]
50,000 civil service jobs could be cut in Labour spending review May 29, 2025 Civil servants are facing another round of job cuts, with as many as 50,000 civil service jobs on the line in the government’s upcoming spending review. According to reports, ten per cent of civil servants, who number 500,000 in total, will be culled. The civil service swelled after Brexit and the pandemic, with 130,000 added [...]
Which taxes could Rachel Reeves raise in the Autumn Budget May 29, 2025 Rising borrowing costs, u-turns on spending cuts and a wafer-thin fiscal headroom all point to one thing: Chancellor Rachel Reeves is widely expected to put up taxes later in the year. But given Labour’s manifesto commitment to avoid tax rises on “working people”, and the pain felt by businesses over National Insurance hikes, many are [...]