Labour could be forced to hike taxes over rising debt, economists warn

Economists warned yesterday that a Labour government will come under pressure to hike wealth and pension taxes to get national debt falling.

It comes as official figures from the Office for National Statistics (ONS) showed the deficit hit £2.7 trillion last month – or 99.8 per cent of gross domestic product – its highest since 1961.

Analysis from Bloomberg Economics showed that though Labour has ruled out hikes on income tax, corporation tax and VAT, it may have to embark on tax raids elsewhere to balance the books.

Ruling out some areas of taxation may have boosted its support 'but it significantly reduces the party's options for dealing with the fiscal challenge that awaits it if it comes to power', said Bloomberg economists Ana Andrade and Dan Hanson.

'A focus on wealth, pensions and businesses will likely be needed to keep the public finances on track,' they said.

labour could be forced to hike taxes over rising debt, economists warn

Analysis from Bloomberg Economics showed that though Labour has ruled out hikes on income tax, corporation tax and VAT , it may have to embark on tax raids elsewhere to balance the books. Shadow chancellor, Rachel Reeves during a visit to Morrisons in Swindon on June 19

labour could be forced to hike taxes over rising debt, economists warn

Sir Keir Starmer has refused to rule out a capital gains tax hike

It adds to fears that a Labour government will pile further pain on firms and families already facing the highest tax burden since the 1940s.

Sir Keir Starmer and his Shadow Chancellor Rachel Reeves have refused to rule out a capital gains tax hike.

Bloomberg Economics analysis showed potential changes such as increasing the top rate of the tax from 28 per cent to 45 per cent could bring in between £7.5billion and £17billion for the Treasury.

Labour has also been urged to come clean about its pension tax plans amid fears it could raid the retirement savings of up to nine million workers.

Read more

OTHER NEWS

1 hour ago

Video: Derek Chisora kissed his opponent, wound up the Klitschkos and threatened to SHOOT David Haye! - the controversial heavyweight's most chaotic moments outside the ring after he headbutted a Deliveroo driver

1 hour ago

World champion bodybuilder fronts court after allegedly being busted with millions of dollars in illegal steroids

1 hour ago

Princess Beatrice and Edoardo Mapelli Mozzi share a kiss in unseen photograph from their wedding - as they celebrate four years of marriage

1 hour ago

New Balance's sale includes discounts on trainers with up to 50% off - including popular 327 and 550 styles (plus, save an extra 30% with our code)

1 hour ago

Toyah Cordingley murder trial delayed

1 hour ago

Chelsea to finish top four, Crystal Palace to finish in the top half and Leeds to win the league valued at 18/1 - as the Premier League and Championship kick off next month

1 hour ago

Man United and Liverpool 'set to battle it out to sign France star on a free transfer'... as Red Devils look to beat their arch-rivals to another target after landing £52m Leny Yoro

1 hour ago

What the 9 human cases of bird flu in the U.S. so far tell us about the disease

1 hour ago

UK pay growth slows but likely still too high for Bank of England to keep lid on inflation

1 hour ago

Michelin-rated restaurant fights back against online blackmailers

1 hour ago

India taking 'baby steps' to get involved in semiconductor value chain: Goldman Sachs

1 hour ago

Indianapolis Turning Point: Reddick set to steal regular-season title? What to expect in Indy return?

1 hour ago

This is what it's like to party in a country on the brink of war

1 hour ago

Oil and gas regulator rejects reports of govt meddling in North Sea drilling applications

1 hour ago

Refused to give up first-class seat to child: Online debate erupts

1 hour ago

Six NFL Quarterbacks Taken In The UFL Draft On Wednesday

1 hour ago

German coalition approves controversial 2025 budget to boost economy

1 hour ago

Shady's back: Eminem to perform at Abu Dhabi F1 after-race concert

1 hour ago

I’ve placed a big bet on this forgotten FTSE 100 share and think I’m onto a winner

1 hour ago

Motor racing-Magnussen to vacate Haas F1 seat at end of season

1 hour ago

North Korean Defector to Lead South Korea's Unification Council

1 hour ago

New Minister wants to form a state-owned water company

1 hour ago

Manipur Govt launches re-verification drive to curb illegal immigration from Myanmar

1 hour ago

Revealed: The coronavirus outbreak plan ignored by the government during the pandemic

1 hour ago

Mystery buyer sets record for most spent at dinosaur auction

1 hour ago

Charlize Theron explains The Old Guard 2 release delay

1 hour ago

Man Utd's stance on Matthijs de Ligt transfer emerges after medical completed

1 hour ago

EU’s von der Leyen vows to fight for democratic, ‘strong’ Europe in bid for second term

1 hour ago

Wage growth falls back further but continues to outstrip inflation

1 hour ago

Joe Biden walks slowly off Air Force One after testing positive for Covid

1 hour ago

Nawazuddin Siddiqui admits he did Rajinikanth’s Petta only for the money, says he feels ‘guilty’ for ‘cheating’ in his performance: ‘Itna saara paisa…’

1 hour ago

Weather damage estimated to be in excess of R1bn as next storm hits today

1 hour ago

Huge sale in Dubai: Amazon's Prime Day is underway

1 hour ago

Here’s how the repo rate impacts your pocket

1 hour ago

Former Secret Service agent says Trump would-be assassin Thomas Crooks scouted rally spot in advance

1 hour ago

Bellingham ‘set up’ by senior England players who were ‘happy’ Real Madrid star took media ‘flak’

1 hour ago

Is this the anti-ageing elixir we've all been waiting for? Scientists reveal whether it could REALLY slow human aging too - as 'supermodel granny' drug that extends lifespan of mice by 25% is created

1 hour ago

China investigators suspect construction work caused fire that killed 16 people in shopping mall

1 hour ago

Vietnam's President To Lam becomes caretaker of Communist Party while chief Trong focuses on health

1 hour ago

Real Madrid fans will 'be made to wait for Kylian Mbappe's debut', with club's new superstar signing set to MISS their pre-season tour of the US

ALONGWALKER VIETNAM: Kênh khám phá trải nghiệm của giới trẻ, thế giới du lịch ALONGWALKER INDONESIA: Saluran untuk mengeksplorasi pengalaman para pemuda global