Rachel Reeves hints at tax rises in Budget as she heads to Riyadh in search of trade deal
Reeves says tax rises are on the table for upcoming Budget
- Chancellor Rachel Reeves has indicated that tax rises are being considered for the upcoming Budget to address a significant fiscal shortfall.
- Estimates for the fiscal black hole range from £22bn, according to the Institute for Fiscal Studies, to £50bn, as suggested by the National Institute of Economic and Social Research.
- Despite previous manifesto pledges not to increase income tax, national insurance, or VAT, Ms Reeves stressed the importance of meeting fiscal rules and ensuring "sufficient headroom" when asked if tax rises were being considered.
- The Chancellor is reportedly contemplating a "mansion tax", which would impose an annual charge on properties valued at over £2m.
- Ms Reeves is also prioritising economic growth to improve the UK's financial position, currently leading a delegation in Saudi Arabia to finalise a trade deal with the Gulf Cooperation Council.