UK faces high taxes for years after Birmingham Budget speech

In a pre-Budget speech in Birmingham, the Prime Minister of the UK has indicated that the country will face high taxes for years to come. A staggering tax hike of £35 billion is expected in the upcoming Budget, contradicting Labour's previous claims during the election campaign that tax increases would be modest and fully funded. This move is part of an effort to stabilize public funding and investments aimed at economic growth after years of low growth and stagnation. Despite pledging not to raise taxes on working people, party sources confirmed that there would be an increase in employers' National Insurance by up to 2p, a decision that has been met with criticism given Labour’s assurances during the campaign. The Chancellor, Rachel Reeves, has also been noted for her earlier characterization of National Insurance as a 'tax on jobs,' raising concerns about the implications for workers. The broader tax-free guarantee has been narrowed down to ensure wages won't be directly affected right after the Budget. Paul Johnson from the Institute for Fiscal Studies pointed out that most taxes inevitably impact working individuals, suggesting that the average worker will face longer-term consequences, such as stagnant wages or potential job losses. Additionally, there is speculation that the government might not implement the full recommended increase in fuel duties. The Chancellor is expected to offer some support to small businesses regarding business rates to alleviate some financial strain. The government is framing these tough decisions as essential for repairing public services and economic foundations that have suffered in prior years.