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UK Treasury chief admits business tax rise could lead to lower than anticipated wages

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U.K. Treasury chief Rachel Reeves has conceded that wages may rise by less than previously thought as a direct result of her budget decision to increase a tax that businesses pay for their employees.

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“I recognize there will be consequences,” Reeves told the BBC. “It will mean that businesses will have to absorb some of this through profit and it is likely to mean that wage increases might be slightly less than they otherwise would have been.

The IFS said the government will potentially need to raise up to another 9 billion pounds the year after next to avoid cutting spending in some departments.

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UK Treasury chief admits business tax rise could lead to lower than anticipated wagesU.K. Treasury chief Rachel Reeves has conceded that wages may rise by less than previously thought as a direct result of her budget decision to increase a tax that businesses pay for their employees.
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