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Chancellor Rachel Reeves poses with a red box on the street 11 Downing -Rate on October 30, 2024 in London, England. This is the first budget represented by the new work government and Chancellor Cash Rachel Reivz.
Dan Kitwood | Getty Images | Gets the image
Treasury UK on Wednesday disclosed On November 26, Finance Minister Rachel Riviz will provide the country’s autumn budget against the backdrop of heavy pressure to resolve the fiscal puzzle for costs, taxation and borrowing.
The budget will decide the economy that “does not work well for workers well,” Riviz said in the comments released by the Treasury.
“Bills are high. Going forward, feel more rigid. You put more, go out. It should change,” she added.
The UK long -term borrowing expenses have grown this week amid the market shudder for the upcoming budget, and how the British Finance Minister will comply with the financial “rules” to make sure that daily expenses are funded by tax revenues, not borrowing, and also reduce debt. Reiva repeatedly rejected the possibility of flexing his own financial rules for borrowing.
She once again emphasized this position on Wednesday, saying that the UK “should reduce inflation and borrowing costs, maintaining the dense maintenance of everyday costs through our non -financial rules.”
She added that “just what we can afford to do what we want to do.”
Economists predict that the Reiviz will have a hike taxes to comply with its rules, as well as to keep some fiscal “plug” in its budget, about £ 10 billion, which has already been blurred to reduce the cost of well-being and borrowing costs.
“Hardly passing a day, without guessing about new and inventive ways to make the chancellor a profit in the autumn budget. Our opinion is that Riviz will need to raise 18-28 billion pounds (24-37 billion) revenues mainly with higher taxes,” said Gregory.
“Increasing taxes that bring a lot of profits is politically enjoyable and improving economic forecasts, it has long become a holy gray of governments. But it will remain elusive,” Gregory predicted.
Taxes – one of the few levers that remained for the Reiva after it announced A number of long -term expense plans Earlier this year, with the protection and the National Health Service, which are the main recipients of additional financing and investment.
Efforts to reduce costs in other areas came to the square, and a number of legislators of the Labor Party, who oppose the reduction of the cost of welfare and payment of winter fuel for pensioners.
Where the ax falls, when it comes to raising taxes, it is a key question: the jerk has already increased the tax burden on the business sector, leaving workers to face a potential tax increase, the budget came. This, however, violate the Labor Manifesto, is obliged not to increase income tax, national insurance for employees and VAT.
In the corner
The reluctance to reduce the costs of well -being and collect taxes, promising high costs on NHS, protection, infrastructure and education, means that the Laborizer entered the corner, said CNBC Chief Economist Peel Hunt Kallum Pickering.
“The economy is really quite simple.
“We sweat about whether a government with a 3 trillion economy can attract 20 billion pounds in the budget. This is not because the bond market will not allow you to make adjustments. This is because you have prevented yourself from taking advantage that can bring you there,” Piking said.
Bond markets are definitely 30-year-old UK government bondsknown as Gilts, striking by the highest level since 1998. Tuesday. The bond provides in the US and other major European economies, which reflects broader financial worries.
Investors who require a higher interest rate for retention in the UK were considered as a warning to the British government that the Reiviz should follow its financial rules and restore financial confidence in the government policy – either risking investors’ trust in the country’s leadership and economic prospects.
