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Chancellor Faces Pressure for £40 Billion Tax Hike

7/5/2025

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Summary

Story summary

Chancellor Rachel Reeves is under mounting pressure to raise taxes by as much as £40 billion as the economy falters and debt escalates. Following a Labour backlash against benefit cuts, experts caution that she might have to resort to last year's hefty tax hikes, with proposals like extending income tax freezes and overhauling council tax on the table.

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Story summary

Chancellor Rachel Reeves is under mounting pressure to raise taxes by as much as £40 billion as the economy falters and debt escalates. Following a Labour backlash against benefit cuts, experts caution that she might have to resort to last year's hefty tax hikes, with proposals like extending income tax freezes and overhauling council tax on the table.