{"id":169969,"date":"2025-06-09T10:07:11","date_gmt":"2025-06-09T10:07:11","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/169969\/"},"modified":"2025-06-09T10:07:11","modified_gmt":"2025-06-09T10:07:11","slug":"will-the-uk-spending-review-lead-to-autumn-tax-rises-have-your-say","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/169969\/","title":{"rendered":"Will the UK spending review lead to autumn tax rises? Have your say"},"content":{"rendered":"\n

Chancellor Rachel Reeves is due to deliver the outcome of the UK government’s spending review on Wednesday, 11 May, setting out departmental budgets for the next few years.<\/p>\n

The review will set out the day-to-day spending on public services, such as the NHS and schools, as well as planned areas of investment, including infrastructure and research.<\/p>\n

Health and defence are expected to be among the “winners<\/a>” from Wednesday’s spending review. In addition, the government said on Sunday that Reeves would unveil an \u00a386bn boost for funding research and development in her announcement on Wednesday.<\/p>\n

Read more: <\/strong>Stocks to watch this week: TSMC, Adobe, Tesco, Bellway and Inditex<\/strong><\/a><\/p>\n

However, the government faces a tough fiscal situation and the Institute for Fiscal Studies (IFS) warned last week <\/a>that “sharp trade-offs are unavoidable”.<\/p>\n

“A more generous NHS settlement, or going further and faster on defence spending, would make cuts to other public services even more likely,” the think-tank said.<\/p>\n

“Within the category of ‘unprotected’ departments, larger increases for some areas \u2013 prisons, say, which face well-publicised challenges \u2013 would mean less (i.e. bigger cuts) for others.”<\/p>\n

\"Chancellor Chancellor Rachel Reeves will announce her spending review on Wednesday, 11 May. \u00b7 Dan Kitwood, PA Images <\/p>\n

In a note on Friday, Ruth Gregory, deputy chief UK economist at Capital Economics, said that the spending review would “shine a light on the tight fiscal position. And Reeves\u2019 problems are far from over. U-turns on benefit spending and higher borrowing costs may mean to maintain the current buffer against her fiscal rules Reeves has to raise \u00a318-46bn in the autumn budget.”<\/p>\n

Gregory said in a separate note that those U-turns on benefit and welfare spending, along with increased pressure to ramp up defence spending and higher borrowing costs, had left Reeves in a “sticky position”.<\/p>\n

“If she wishes to avoid a political backlash and\/or an adverse reaction in the financial markets, she probably has little choice but to raise taxes in the autumn budget,” Gregory said.<\/p>\n

In addition, Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “If a potential funding gap emerges [from the spending review], there\u2019s going to be speculation that taxes could be hiked to close it.<\/p>\n

“The government very broadly has two options when it comes to fund raising from taxes. It could make a whole host of smaller tax tweaks \u2013 all of which could cause their own problems, or it could tackle a major tax, which would be politically risky.”<\/p>\n

Do you think the spending review could open the door to tax rises being announced in the autumn budget? Vote in the poll below.<\/p>\n","protected":false},"excerpt":{"rendered":"Chancellor Rachel Reeves is due to deliver the outcome of the UK government’s spending review on Wednesday, 11…\n","protected":false},"author":2,"featured_media":169970,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,4],"tags":[362,748,31610,393,4884,1144,619,70860,712,66727,16,10788,15,1764],"class_list":{"0":"post-169969","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-uk","8":"category-united-kingdom","9":"tag-autumn-budget","10":"tag-britain","11":"tag-defence-spending","12":"tag-england","13":"tag-great-britain","14":"tag-northern-ireland","15":"tag-rachel-reeves","16":"tag-ruth-gregory","17":"tag-scotland","18":"tag-spending-review","19":"tag-uk","20":"tag-uk-government","21":"tag-united-kingdom","22":"tag-wales"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114652856900012003","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/169969","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=169969"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/169969\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/169970"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=169969"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=169969"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=169969"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}