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UK Housing Market Loses Momentum as Tax Worries Surface, RICS Says

Chancellor Rachel Reeves plans to raise multiple taxes to address a £40 billion deficit amid high national debt and low productivity, aiming to meet fiscal rules in the Autumn Budget.

  • Chancellor Rachel Reeves announced plans to tighten inheritance tax rules today, preventing tax-free asset gifts seven years before death.
  • This tax change follows ongoing fiscal pressures, including a worsening deficit around £40 billion and high borrowing limits warned by bond markets.
  • The government aims to boost productivity and growth through infrastructure investment, construction skill funding, and reforms in the Planning and Infrastructure Bill.
  • GDP contracted by 0.3% in April 2025 amid shrinking manufacturing and export decline, with productivity 0.2% lower than the previous year’s first quarter.
  • These developments suggest tax rises and spending reviews this autumn intend to strengthen public finances while addressing economic challenges ahead.
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Reeves pledges to tackle productivity challenge at autumn budget

Labour’s second year in power will be focused on ‘building a stronger economy for a renewed Britain’, the Chancellor said.

·London, United Kingdom
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Downtown in Business broke the news in on Wednesday, August 13, 2025.
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