US EditionReeves’ Nics hike stunting growth and pushing up food prices, Bank says
UNITED KINGDOM, AUG 8 – The Bank of England links Chancellor Rachel Reeves’s £25 billion national insurance increase and rising minimum wages to food price inflation of up to 6%, squeezing household budgets.
- On Wednesday, Prime Minister Keir Starmer insisted his Government is bearing down on costs and putting more money into people's pockets, citing recent interest rate cuts and wage increases.
- The Bank of England warned living standards will stagnate for at least a year under Labour after disposable income fell by 1% in the first quarter and inflation rose to 3.6%.
- The Bank of England cut interest rates to 4% from 4.25% and warned inflation would not return to target until 2027, with officials saying Rachel Reeves’s 25 billion national insurance raid has already added between 1 and 2 percent to food prices.
- While borrowers welcomed the rate cut, around 700,000 families will still see repayments rise as fixed-rate deals expire.
- The National Institute of Economic and Social Research projected a potential 51 billion gap in public finances, urging moderate but sustained tax rises to address the deficit.
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Gary Neville accuses Labour of making it harder for businesses to hire after £25bn tax hike – Your Capital Minds
Gary Neville has publicly criticised Labour’s decision to raise employer national insurance, warning the move will make it harder for companies to take on staff and risks stifling growth in an already fragile economy. The former Manchester United and England footballer, who was one of Sir Keir Starmer’s most prominent backers during last year’s election, said Chancellor Rachel Reeves’ £25 billion tax hike had been poorly timed. “I honestly don’t…
Gary Neville accuses Labour of making it harder for businesses to hire after £25bn tax hike
Gary Neville has publicly criticised Labour’s decision to raise employer national insurance, warning the move will make it harder for companies to take on staff and risks stifling growth in an already fragile economy. The former Manchester United and England footballer, who was one of Sir Keir Starmer’s most prominent backers during last year’s election, said Chancellor Rachel Reeves’ £25 billion tax hike had been poorly timed. “I honestly don’t…
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