UK Chancellor Reeves Denies Income Tax Hike Amid Fiscal Policy Turmoil
UK Chancellor Rachel Reeves has dismissed leaked reports suggesting potential increases to income tax rates, calling such disclosures 'not acceptable.' The denial follows weeks of market uncertainty after she initially hinted at revising tax policies—a move that WOULD have violated Labour's 2024 manifesto pledge.
The abrupt reversal triggered immediate turbulence in financial markets, with UK government bond yields spiking. Economists warn the decision leaves a £30 billion fiscal shortfall, raising questions about how the gap will be bridged without stifling economic growth.
Reeves emphasized the upcoming budget will prioritize cost-of-living relief, NHS waitlist reductions, and national debt containment. Market participants remain wary of mixed signals from Treasury officials, noting the incident underscores the fragility of investor confidence in fiscal policymaking.
