US EditionRachel Reeves hints taxes may rise because of benefits retreat
UNITED KINGDOM, JUL 4 – Chancellor Rachel Reeves indicated tax rises may be needed to cover a £40 billion budget shortfall caused by welfare reform reversals, according to the Institute for Fiscal Studies.
- Rachel Reeves warned MPs on Thursday that welfare changes passed this week will increase costs reflected in the upcoming Budget.
- The Government abandoned major welfare cuts, including restrictions to disability benefits, creating a £5 billion shortfall that requires new funding plans.
- Ms Reeves said she would not rule out tax rises to cover the gap and described the fallout from the welfare bill as damaging.
- Eliminating the two child benefit limit could reduce child poverty for approximately 360,000 youngsters but would nearly exhaust Reeves's £9.9 billion available fiscal margin.
- Ms Reeves affirmed she has never considered resigning and continues to manage the situation despite personal and political pressures.
39 Articles
39 Articles
U.K. business leaders are ‘struggling to see what’s business-friendly’ about Labour
Before taking office last July, UK Chancellor of the Exchequer Rachel Reeves met business leaders over a series of breakfasts that became known as the smoked salmon and scrambled eggs offensive. British bosses were clamoring for change after 14 years of rule by the opposition Conservative party, and her pitch went down well. But a year on from the Labour Party’s landslide election win, that initial optimism has been replaced by discontent over t…
UK Business Leaders Are ‘Struggling to See What’s Business-Friendly’ About Labour
Before taking office last July, UK Chancellor of the Exchequer Rachel Reeves met business leaders over a series of breakfasts that became known as the smoked salmon and scrambled eggs offensive. British bosses were clamoring for change after 14 years of rule by the opposition Conservative party, and her pitch went down well.
Rachel Reeves hints at tax rises in autumn budget after welfare bill U-turn
Initially aimed at saving £5.5bn, the watered-down welfare bill now leaves the government with an estimated £5.5bn black hole - close to breaching the chancellor's fiscal rules set out last year.
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