"Some analysts have estimated that Reeves will have to raise tens of billions of pounds through either increasing taxes or cutting spending in order to meet her rules which she has described as "non-negotiable". The two main rules are: Not to borrow to fund day-to-day public spending by the end of this parliament To get government debt falling as a share of national income by the end of this parliament Before the 2024 general election, Labour promised not to increase income tax, National Insurance or VAT for working people."
"The politics is important and we're going to hear lots and lots about whether Rachel Reeves can raise the money she wants without breaking one of her manifesto pledges and that's worth thinking about but the economics is important too."
"directionless tinkering and half-baked fixes"
Taxes are widely expected to rise in the upcoming Budget as the chancellor faces pressure to meet self-imposed fiscal rules. The two fiscal rules require not borrowing to fund day-to-day public spending and getting government debt to fall as a share of national income by the end of the parliament. Labour pledged before the 2024 general election not to raise income tax, National Insurance or VAT for working people. The Institute for Fiscal Studies warned that some tax rises could be especially economically harmful and that there are constraints on major taxes, making large revenue increases possible but complex.
Read at www.bbc.com
Unable to calculate read time
Collection
[
|
...
]