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2025-10-29 21:11:16
[UK Fiscal Cliff looms, Starmer refuses to commit to keeping taxes unchanged] ⑴ British Prime Minister Keir Starmer on Wednesday refused to commit to his campaign promise to keep workers' taxes unchanged, foreshadowing potential tax increases in the budget. ⑵ Starmer stated that upcoming forecasts will show the economy is worse than expected, paving the way for policy adjustments. ⑶ Economists predict Chancellor Rachel Reeves may be forced to break her promise to raise income tax rates. ⑷ Conservative leader Neil Bardonock questioned the Prime Minister about his commitment not to raise income tax, social security, and VAT. ⑸ Starmer only stated that the government will announce its plans in the November 26 budget, avoiding a direct answer. ⑹ Official forecasting agencies predict a 0.3 percentage point downward revision to the UK productivity outlook, exceeding expectations. ⑺ The fiscal deficit could reach £20 billion, severely constraining the government's implementation of established fiscal rules. ⑻ Reeves is considering various options to achieve the goal of balancing daily expenditures and tax revenue by the end of this decade.
