Sympathy and scepticism on UK’s Reeves budget update

Record ID: 1986053

  • Title: Sympathy and scepticism on UK’s Reeves budget update
  • Date: 26th March 2025
  • Summary: LONDON, ENGLAND, UNITED KINGDOM (MARCH 26, 2025) (REUTERS) VARIOUS OF COMMUTERS WALKING OVER LONDON BRIDGE THE SHARD, CLOUD PASSING OVERHEAD (SOUNDBITE) (English) 45-YEAR-OLD ACCOUNTANT, SCOTT HARROWER, SAYING: “Yeah, I think it's totally what was expected. I mean, the increase in National Insurance and minimum wage was always going to slow everything down. So I think ever
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  • Keywords: BUDGET Rachel Reeves UK economy r
  • Location: LONDON, ENGLAND, UNITED KINGDOM
  • City: LONDON, ENGLAND, UNITED KINGDOM
  • Country: UK
  • Topics: Europe,Budget/Taxation/Revenue,Government/Politics
  • Reuters ID: LVA001181626032025RP1
  • Aspect Ratio: 16:9
  • Story Text: Londoners expressed concern, but a lack of surprise, following British finance minister Rachel Reeves’ budget update on Wednesday (March 26).
    Reeves cut the government's plans for spending increases to get back on track towards her fiscal targets, but risks in the world economy could raise the prospect of UK tax hikes later this year.
    The country's budget watchdog halved its forecast for economic growth in 2025 and said a catch-up towards the end of the decade would not make up all of the difference.
    It also raised its forecasts for public borrowing.
    She said day-to-day public spending would grow by 1.2% a year in real terms, slower than her previous plan.
    The government had previously announced planned savings from welfare, angering some lawmakers from the governing Labour Party.
    Reeves and British Prime Minister Keir Starmer promised voters last year they would not hike income tax or other big revenue-raisers.
    But they could extend a freeze on the thresholds at which people start to pay basic and higher rates of income tax, dragging more people into the tax net.
    (Production: Gerhard Mey, Marissa Davison)
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2025. Open For Restrictions - http://about.reuters.com/fulllegal.asp
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