the chancellor has rejected the latter forecast<\/a>.<\/p>\nSince Labour pledged in its manifesto last year not to raise taxes on “working people” – namely income tax, National Insurance and VAT – speculation is growing around what changes she might make.<\/p>\n
Companies have long spoken of the financial hit they have taken from a rise in employers’ National Insurance Contributions (NICs) and the minimum wage that came into force in April.<\/p>\n
And some have warned that tax rises for business could hamper growth further, with some saying they are holding off on hiring or investing until the details of the Budget become clear.<\/p>\n
Yael\u202fSelfin, chief economist at KPMG UK, said the “weak start to the third quarter [is] a sign of things to come”.<\/p>\n
“Economic activity is expected to slow in the second half of the year as the temporary factors which pushed up growth in the first half of 2025 begin to fade,” she said.<\/p>\n
“Additionally, the later date of the Autumn Budget could prolong some uncertainties for businesses, delaying investment decisions and acting as a drag on growth until more clarity emerges.”<\/p>\n
Responding to the latest growth figures, a Treasury spokesperson said: “We know there’s more to do to boost growth because whilst our economy isn’t broken, it does feel stuck.<\/p>\n
“That’s the result of years of underinvestment, which we’re determined to reverse through our plan for change.<\/p>\n
Shadow chancellor Sir Mel Stride said: “Any economic growth is welcome – but this government is distracted from the problems the country is facing.<\/p>\n
“While the government lurch from one scandal to another, borrowing costs recently hit a 27-year high – a damning vote of no confidence in Labour that makes painful tax rises all but certain.”<\/p>\n
Liberal Democrat Treasury spokesperson Daisy Cooper MP said: “The government talks of going full throttle on growth but the reality is they have left the handbrake on.<\/p>\n
“Their growth-crushing jobs tax risks hollowing out our High Streets and ministers’ refusal to jettison their short-sighted red lines on cutting red tape with Europe is holding back our exporters.”<\/p>\n","protected":false},"excerpt":{"rendered":"Reeves is widely expected to raise taxes in the Budget if she wants to meet her self-imposed rules…\n","protected":false},"author":2,"featured_media":15535,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[114,184,85,46],"class_list":["post-15534","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-il","tag-israel"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/15534","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=15534"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/15534\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/15535"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=15534"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=15534"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=15534"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}