Britain’s finance minister Rachel Reeves, whose big tax-and-spend budget was accompanied by only tepid growth forecasts, insists she has more plans to boost the economy and she hopes to not have to raise taxes again. “The growth forecasts yesterday from the Office of Budget Responsibility are not the summit of my ambition,” Reeves told LBC radio on Thursday.
Reeves acknowledged that her increase in the rate of social security contributions paid by employers - which accounted for 25 billion pounds of the total 40 billion pounds in tax increases - would have consequences. “It will mean that businesses will have to absorb some of this through profits, and it is likely to mean that wage increases might be slightly less than they otherwise would have been,” she told BBC television.
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