Keir Starmer Won't Rule Out £40bn Tax Increase

Keir Starmer has not ruled out a tax raid equal to that seen last year. He has refused to rule out a softer Autumn Budget this year compared to the tax raid last year, which raised £40bn extra in receipts from businesses and homeowners.

The Prime Minister has stated that the UK cannot tax its way to growth, while Chancellor Rachel Reeves has vowed not to increase taxes on the scale seen last year. However, at a press conference unveiling the government's 10-year NHS plan, Keir Starmer declined to comment on the amount of tax the government may need to raise later this year to cover costs from U-turns on welfare reforms and supporting struggling businesses.

When asked about potential tax hikes similar to last year, the Prime Minister mentioned that no cabinet minister would write a budget in advance. He highlighted the tough decisions made in the previous year's Budget to stabilize the economy and expressed confidence in the ongoing economic recovery.

Rachel Reeves, facing questions about her future as Chancellor, has a £5bn hole in public finances due to reintroduced winter fuel payments and delayed PIP reforms. City analysts warn of higher borrowing costs and lower growth projections affecting her fiscal headroom of £9.9bn.

Despite initial market concerns, Keir Starmer assured that Rachel Reeves would remain Chancellor for a long time. Analysts suggest potential tax increases of up to £20bn this year to restore fiscal headroom and rebuild credibility.