"The gap between revenues and expenditure is widening, and it's doing so in a way that is difficult to bridge through borrowing alone without unsettling markets. In that context, higher taxation becomes increasingly likely."
"Individually, these measures appear incremental. Collectively, they amount to a meaningful shift in how income and wealth are taxed. The effect is often underestimated because it unfolds gradually. But over time, it's significant."
Tax increases are anticipated in the upcoming autumn Budget as Chancellor Rachel Reeves faces a challenging fiscal landscape. Rising oil prices from the Iran conflict are exacerbating inflation, while economic growth remains weak and borrowing costs high. Spending pressures are mounting from higher energy costs, defense commitments, and strained public services. The widening gap between revenues and expenditures makes borrowing less viable, leading to a higher likelihood of tax increases through less visible measures rather than a single income tax hike.
Read at London Business News | Londonlovesbusiness.com
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