‘You’ll have to wait and see’: Reeves’ deputy can’t rule out autumn tax rises

Sunday 15 June 2025 12:53 pm
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Sunday 15 June 2025 1:06 pm

Treasury chief secretary Darren Jones refused to rule out additional tax hikes within the autumn price range on Sunday.

Requested on GB Information whether or not he would rule out tax rises later this 12 months, Jones mentioned “that will probably be topic to the OBR forecasts… it’s proper that we take a lot of these resolution in an orderly manner.”

“You’re going to have to attend.”

It comes after the UK financial system suffered its worst contraction for a 12 months and a half in April, shrinking 0.3 per cent.

Economists warned {that a} failure to extend UK progress would “virtually definitely” result in additional tax hikes to satisfy spending pledges for the NHS and defence.

The federal government is below strain from NATO to extend army spending to three.5 per cent of GDP. It has at the moment dedicated to a goal of three per cent by 2034.

‘Chunky’ tax rises

The Institute for Fiscal Research (IFS) has mentioned this can possible imply “chunky tax” rises as ministers search for an extra £10 to £15bn per 12 months.

Companies have reacted furiously to adjustments to Nationwide Insurance coverage and enterprise property aid unveiled in Reeves’ maiden price range final October.

Jones argued the worldwide uncertainty created by President Donald Trump’s tariff announcement had hit enterprise confidence in April. “It’s no shock that in that month, the market was suppressed due to not realizing what was going to occur.”

“For those who look again on the final quarter, we’ve been the quickest rising financial system within the G7.” He famous the UK had additionally managed to safe a commerce cope with the Trump administration.