{"id":529749,"date":"2025-10-26T19:43:25","date_gmt":"2025-10-26T19:43:25","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/529749\/"},"modified":"2025-10-26T19:43:25","modified_gmt":"2025-10-26T19:43:25","slug":"rachel-reeves-slammed-by-ex-bank-of-england-governor-in-7-word-swipe-politics-news","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/529749\/","title":{"rendered":"Rachel Reeves slammed by ex-Bank of England governor in 7-word swipe | Politics | News"},"content":{"rendered":"

A former Bank of England<\/a> governor has accused Rachel Reeves<\/a> of searching for answers to raise funds \u201con the back of a fag packet\u201d. Lord King\u2019s scathing seven-word swipe of the Chancellor came as he warned she lacks a \u201ccoherent\u201d strategy on tax<\/a>.<\/p>\n

Ms Reeves is widely expected to raise taxes and cut spending in her Budget next month<\/a> to fill a huge black hole in public finances. Economists estimate the gap to be between \u00a320billion and \u00a350billion. Reports suggest Ms Reeves is considering a new mansion tax<\/a>, as well as a manifesto-busting 2p hike to income tax<\/a>.<\/p>\n

Lord King, who led the Bank of England through the 2008 financial crisis, told the Sunday with Trevor Phillips show on Sky News<\/a>: \u201cWhat I would advise her to do is to set up a group of people who, in 12 months, look deeply at all aspects of the tax treatment, not just on property, but all kinds of other sorts of savings and wealth, to come up with a coherent view as to what it should look like.<\/p>\n

\u201cAnd that doesn\u2019t seem to happen. What happens is, the OBR [Office for Budget Responsibility] produces just before the Budget a number, one number, and then they look around for, you know what idea is, almost written on the back of a fag packet about how you can raise an extra few billion here or few billion there.<\/p>\n

\u201cThat is not a coherent tax strategy, and you could do a great deal by thinking it through first.\u201d<\/p>\n

When asked whether he could \u201cdiscern a plan\u201d from the Chancellor, the crossbench peer answered \u201cno I can\u2019t\u201d.<\/p>\n

\u201cAnd that\u2019s what worries me,\u201d he added.<\/p>\n

Ms Reeves is set to unveil her Budget on November 26.<\/p>\n

Health Secretary Wes Streeting admitted on Sunday that public finances are in a \u201cchallenging state\u201d, while also insisting there were \u201cgreen shoots\u201d of economic recovery.<\/p>\n

However, he added \u201cwe\u2019re not out of the woods yet\u201d, adding Ms Reeves has a \u201cchallenging job\u201d.<\/p>\n

The Chancellor is weighing up a new mansion tax, according to the Mail on Sunday<\/a>.<\/p>\n

It reports this would hit owners of properties with an annual charge of 1% of the amount by which its value exceeds \u00a32million.<\/p>\n

Meanwhile, The Sun on Sunday suggested she was considering the 2p hike to income tax.<\/p>\n

Earlier this month, the International Monetary Fund projected the UK to have the second-fastest growing economy in the G7.<\/p>\n

However, it also forecasted that UK inflation was set to surge to the highest out of any G7 nation in 2025 and 2026<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"A former Bank of England governor has accused Rachel Reeves of searching for answers to raise funds \u201con…\n","protected":false},"author":2,"featured_media":529750,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,4],"tags":[936,1700,22664,528,12,619,1523,16,15],"class_list":{"0":"post-529749","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-uk","8":"category-united-kingdom","9":"tag-bank-of-england","10":"tag-economy","11":"tag-income-tax","12":"tag-labour-party","13":"tag-news","14":"tag-rachel-reeves","15":"tag-taxes","16":"tag-uk","17":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115442182068604659","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/529749","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=529749"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/529749\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/529750"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=529749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=529749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=529749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}