Government Doesn't Rule Out Future Tax Increases as Economy Stalls

Concerns of Recession Loom

The Government is hesitant to rule out the possibility of more tax increases next year following reports of stagnant economic growth.

With zero growth reported from July to September, economists are cautioning that the UK economy may have even contracted in the final quarter of the year.

Fresh Tax Raid on the Horizon?

The Institute for Fiscal Studies has suggested that Chancellor Rachel Reeves might need to consider another tax hike to stabilize the country's finances.

IFS chief Paul Johnson warned, "It’s not impossible that the Chancellor will feel she needs to come back for yet more money next autumn if the economy doesn’t pick up."

PM Hints at Possible Tax Increases

Earlier this month, the Prime Minister hinted at the possibility of further tax rises despite already implementing £40 billion worth of tax increases since the July election. He stated that unforeseen events like the pandemic could necessitate changes in economic strategy.

Criticism from Opposition

Shadow Business Secretary Andrew Griffith accused the Labour party of negatively impacting the UK economy, referring to a "summer of trash-talking the economy, an autumn tax-hiking budget, and now a winter of discontent with a recession looming."

Economic Struggles Revealed

Liz McKeown from the Office for National Statistics highlighted that the economy was weaker than previously thought, attributing the decline to reduced spending on leisure activities and advertising.

Living standards were also lower than anticipated, with GDP per head experiencing a 0.2% decrease.

Chancellor Acknowledges Challenges

Chancellor Rachel Reeves acknowledged the significant task ahead in revitalizing the economy and stabilizing public finances after years of neglect.