‘You’ll have to wait and see’: Reeves’ deputy can’t rule out autumn tax rises
Treasury chief secretary Darren Jones refused to rule out further tax hikes in the autumn budget on Sunday.
Asked on GB News whether he would rule out tax rises later this year, Jones said “that will be subject to the OBR forecasts… it’s right that we take these types of decision in an orderly way.”
“You’re going to have to wait.”
It comes after the UK economy suffered its worst contraction for a year and a half in April, shrinking 0.3 per cent.
Economists warned that a failure to increase UK growth would “almost certainly” lead to further tax hikes to meet spending pledges for the NHS and defence.
The government is under pressure from NATO to increase military spending to 3.5 per cent of GDP. It has currently committed to a target of three per cent by 2034.
‘Chunky’ tax rises
The Institute for Fiscal Studies (IFS) has said this will likely mean “chunky tax” rises as ministers look for an additional £10 to £15bn per year.
Businesses have reacted furiously to changes to National Insurance and business property relief unveiled in Reeves’ maiden budget last October.
Jones argued the global uncertainty created by President Donald Trump’s tariff announcement had hit business confidence in April. “It’s no surprise that in that month, the market was suppressed because of not knowing what was going to happen.”
“If you look back at the last quarter, we’ve been the fastest growing economy in the G7.” He noted the UK had also managed to secure a trade deal with the Trump administration.