Poll Shows Most Want Higher Taxes for Top Earners

A recent YouGov poll reveals that 58% of the public supports increasing the top rate of income tax for individuals earning over £150,000 annually. This sentiment emerges as Labour's Rachel Reeves prepares to present the first Labour Budget in 14 years, amid growing concerns about the state of the UK’s public finances. The Chancellor is facing pressure as government borrowing reached £3.1 billion last month, significantly exceeding forecasts and marking the highest July borrowing since 2021. Chief Secretary to the Treasury Darren Jones attributed the disappointing financial figures to the "dire inheritance" from the previous government, highlighting a £22 billion deficit in public finances and the highest public debt levels since the 1960s. He criticized the current situation, where taxpayer money is primarily directed towards servicing debt rather than enhancing public services. Reeves has indicated that the government will need to make "difficult decisions" regarding spending, welfare, and taxation in light of these financial challenges. The New Economics Foundation has emphasized the necessity of investment for a robust economy, warning against further cuts to public services. Experts, including Rob Wood from Pantheon Macroeconomics, suggest that Reeves may need to raise taxes and increase borrowing to adequately fund public services. Isabel Stockton from the Institute for Fiscal Studies noted that the government has already spent 34.1% of its annual budget in just four months, a record high since 1997, raising concerns about fiscal management moving forward.