{"id":259126,"date":"2025-07-12T14:18:09","date_gmt":"2025-07-12T14:18:09","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/259126\/"},"modified":"2025-07-12T14:18:09","modified_gmt":"2025-07-12T14:18:09","slug":"rachel-reeves-facing-judgement-day-recession-fears-explode-over-30bn-black-hole-politics-news","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/259126\/","title":{"rendered":"Rachel Reeves facing judgement day! Recession fears explode over \u00a330bn black hole | Politics | News"},"content":{"rendered":"

Rachel Reeves will attempt to restore confidence<\/a> in the economy next week amid fears of tax hikes<\/a> in the autumn and worry the country could slide into recession. She will deliver the Mansion House speech on Tuesday, less than a week after official figures showed the economy contracted for the second month in a row.<\/p>\n

Ms Reeves is under pressure to set out how she will fund welfare u-turns and fill a potential \u00a330billion hole in the nation\u2019s finances<\/a>. The Chancellor\u2019s speech to leading City figures will come less than a fortnight after her tears during Prime Minister\u2019s Questions.<\/p>\n

Daniel Herring of the Centre for Policy Studies said one of Ms Reeves\u2019s challenges this week will be \u201cshoring up her own position\u201d.<\/p>\n

He said she \u201cneeds to focus on reassuring business and investors that she understands the pressures they are under\u201d \u2013 and should \u201curgently\u201d address barriers to growth such as \u201ctax, planning and energy costs\u201d.<\/p>\n

He said: \u201cWithout this, Rachel Reeves<\/a> will find it very difficult to keep her manifesto commitments on tax rises and British businesses will continue to suffer.\u201d<\/p>\n

Maxwell Marlow of the Adam Smith Institute, pressed her to reform the Financial Conduct Authority, describing it as \u201can unaccountable quango making up rules with barely any oversight\u201d.<\/p>\n

He said: \u201cIts powers must be returned to ministers so that voters can actually hold decision-makers to account.\u201d<\/p>\n

Mr Marlow also wants the Treasury select committee given the \u201cpower to sack the Governor of the Bank of England\u201d.<\/p>\n

He said: \u201cWhen inflation targets are missed, those in charge must be held to account.\u201d<\/p>\n

Emmanuel Igwe of the Prosperity Institute warned the economy could be \u201cheading for a recession\u201d.<\/p>\n

He said: \u201cBusinesses are holding back on investing and hiring, worried about high taxes, complicated rules, and uncertain Government policies.\u201d<\/p>\n

Warning of a slump in business confidence, he added: \u201cIf this continues, it could mean fewer job opportunities, slower wage growth, and a tougher time for families and small businesses.\u201d<\/p>\n

A Treasury source said the Chancellor will \u201cunveil the next step towards driving growth and delivering security for working people\u201d by making the UK the \u201ctop destination for financial services\u201d<\/p>\n

Help is also promised so \u201chard-working people\u201d will find it easier to invest \u201cso everyone can save for a rainy day\u201d. Measures are also anticipated to free businesses \u201cfrom the stranglehold of excessive financial red tape\u201d.<\/p>\n

John Longworth of the Independent Business Network said the Chancellor has pushed Britain into a \u201clow growth doom loop\u201d.<\/p>\n

He wants a 5% cut public spending \u2013 except for defence, policing and education \u2013 to fund cuts to business and personal taxes.<\/p>\n

Douglas McWilliams of the Growth Commission warned the \u201cpublic finances are in a parlous state, not least because public spending is out of control\u201d<\/p>\n

He said the \u201conly way to restore the public finances to rude health is by cutting spending and eliminating waste\u201d.<\/p>\n

John Longworth of the Independent Business Network said the Chancellor has pushed Britain into a \u201clow growth doom loop\u201d.<\/p>\n

He wants a 5% cut public spending \u2013 except for defence, policing and education \u2013 to fund cuts to business and personal taxes.<\/p>\n

Douglas McWilliams of the Growth Commission warned the \u201cpublic finances are in a parlous state, not least because public spending is out of control\u201d<\/p>\n

He said the \u201conly way to restore the public finances to rude health is by cutting spending and eliminating waste\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"Rachel Reeves will attempt to restore confidence in the economy next week amid fears of tax hikes in…\n","protected":false},"author":2,"featured_media":259127,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[51,99425,619,2794,27972,1523,16,99424,15],"class_list":{"0":"post-259126","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-business","9":"tag-public-spending-cuts","10":"tag-rachel-reeves","11":"tag-recession","12":"tag-tax-hikes","13":"tag-taxes","14":"tag-uk","15":"tag-uk-recession-fears","16":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114840699131989861","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/259126","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=259126"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/259126\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/259127"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=259126"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=259126"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=259126"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}