The Budget hack that could soften the tax blow

Published On Oct 13, 2024, 2:57 AM

UK Chancellor Rachel Reeves is addressing a fiscal 'black hole' of £22bn while trying to avoid significant tax increases. She aims to maintain public spending without straining the budget by potentially redefining government debt, potentially allowing for more spending measures. Analysts predict that, while borrowing costs are likely to rise, the market interest remains strong. Reeves is focused on limiting day-to-day operational spending with tax receipts while planning investment in infrastructure, which could stimulate economic growth. The outcome of these fiscal strategies, including possible tax rises of up to £25bn, will be revealed in her upcoming budget announcement on October 30.