The chancellor and prime minister will pitch tax rises and reforms beginning in September to prepare for a difficult budget expected in November. Despite assurances from Treasury sources about no increases in income tax, national insurance, or VAT, discussions are ongoing regarding potential gambling levy increases. The Bank of England has warned about keeping interest rates high due to inflation risks linked to rising food prices. Tax rises are seen as necessary to address a £41.2 billion deficit, with a budget date anticipated in November for clearer economic strategies.
The chancellor and prime minister will begin to pitch-roll tax rises and reforms as part of a strategy to prepare the country for a difficult budget planned for November.
Senior Whitehall sources indicate that Rachel Reeves and Keir Starmer are conducting meetings to outline the budget shape, including a potential rise in gambling levies.
The Bank of England warned it might need to maintain high interest rates longer due to rising food prices, resulting from Labour's tax increases, which could push inflation to 4%.
Moderate but sustained tax rises are deemed essential for Reeves to mitigate a deficit and restore financial stability, while a budget date remains unspecified but is expected in November.
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