14/11/2025 09:09
The Guardian
Jitters over the UK’s autumn budget grow as chancellor Rachel Reeves abandons plans to raise income tax on 26 November The chancellor’s income tax rate hike reversal may be interpreted as the Labour government prioritising their public popularity ratings, and stability of the political party, above the need to stabilise the UK’s finances, analysts have warned.Lee Hardman, senior currency economist at MUFG, says:The initial negative reaction for the pound today … is an indication that the government’s fiscal tightening plans are viewed as less credible by market participants without an income tax hike.The decision to drop the income tax hike could be viewed as the Labour leadership prioritising their popularity with the public and the stability of the Labour party over doing what is best to restore confidence in the public finances. Continue reading...
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