Workers Face £10 Billion Stealth Tax Raid as Reeves ‘Headroom’ Wiped Out – Guido Fawkes

Workers Face £10 Billion Stealth Tax Raid as Reeves ‘Headroom’ Wiped Out

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The Institute for Fiscal Studies has issued a damning report warning that workers could face a £10 billion stealth raid on income tax this month after Reeves “engineered a trap for herself” by leaving dangerously little room to meet her fiscal targets. Options include a freeze on income tax thresholds for another two years or a return to austerity. Just yesterday an ASI survey revealed three-quarters of firms blamed tax hikes for low growth…

The Treasury has been briefing that welfare cuts and civil service reforms will be enough to satisfy the OBR after Reeves’ £9.9 billion ‘fiscal headroom’ was wiped out. Though a new report from the Resolution Foundation shows that path is far from smooth, suggesting that freezing health-related benefits would only save a paltry £1 billion a year by 2029. A drop in the ocean…

Meanwhile, fresh figures from the ONS reveal that a staggering 67% of businesses with 10 or more employees are bracing for rising staffing costs over the next three months due to Reeves’ NICs hike – a sharp 26-point jump from November 2024. Nearly half of small businesses are planning to raise their prices, and 26% are eyeing staff cuts. No the City have started dubbing Reeves the ‘Chancer of the Exchequer’…