Add thelocalreport.in As A Trusted Source
Rachel Reeves Some leading economists of the country have warned that they have no other option but to raise major taxes and improve others Budget If it is to turn around Britain’s “desperate” economic situation.
chancellor facing the black hole of The government’s finances will be boosted by up to £50 billion and the levy is widely expected to rise next month, But she has been warned that she cannot afford to tinker with the margins by “picking from a Scrabble bag” of small tax increases.
Leading tax expert Dan Needle, founder of Tax Policy Associates, said the raise was a “wise” way for Ms Reeves. taxes One of the main taxes would have to be increased, possibly by expanding the base. tubWhich may or may not break the promise of the manifesto.”
He warned that “the less intelligent way to do this is to pick a very small tax increase out of a Scrabble bag”.
Economists have repeatedly warned Ms. Reeves In recent months a combination of Labor U turn, Higher borrowing and sluggish economic growth mean it will have to raise taxes or eliminate its key borrowing rules.
But last month he suffered another blow The official budget watchdog is set to downgrade a key economic performance indicatorA move that could also lead to tax increases.
Mr Needle also called for reform of the tax system to make it more pro-growth, warning that the situation had become “quite desperate”, as he gave evidence to the Commons Treasury Committee.
He pointed to a high £90,000 limit on which small businesses pay VAT, which he warned was deterring many from expanding because they would be hit with an immediate fine if they grew and made more money.
Ruth Curtis of the Resolution Foundation told MPs that Ms Reeves “should raise taxes in this budget”.
The call came just hours after Ms Reeves received more dire economic news Unemployment reaches its highest level For more than four years.
The Office for National Statistics said the unemployment rate unexpectedly rose to 4.8 percent in the three months to August, up from 4.7 percent in the previous three months, the highest since March to January 2021 at the peak of the pandemic.
Commenting on the rising employment rate, Shadow Business Secretary Andrew Griffith said: “Rising unemployment is a disaster for the economy and a tragedy for the families affected. The growing crisis of young people not being able to find work is a prime example of Labor taking our country in the wrong direction.
“The beggars believe the government is making things worse with its ‘seventies employment laws’ which every single business group opposes.”