Autumn tax rises ‘increasingly likely’
Despite UK government borrowing slightly undershooting forecasts so far this financial year, tax rises in the autumn are likely.
That’s the view of City consultancy Capital Economics, who told clients this morning:
Despite the overshoot in May, public borrowing was £2.9bn below the OBR’s forecast in the first two months of the fiscal year. That said, the OBR may still revise up its borrowing forecasts from March in the Autumn Budget.
That and already-tight spending plans mean tax hikes later this year appear increasingly likely.
Last week, ther was a flurry of predictions of tax rises after chancellor Rachel Reeves outlines the government’s spending plans for the next few years.
Capital…