Starmer Refuses to Rule Out £50bn Tax Rises Amid UK Budget Shortfall

Prime Minister Keir Starmer has declined to rule out tax increases in the upcoming autumn Budget amid a reported £50 billion shortfall in the UK government’s finances. The National Institute of Economic and Social Research (NIESR) warned that Chancellor Rachel Reeves faces a £41.2 billion borrowing gap and must implement either tax rises or spending cuts totaling around £51.1 billion to meet fiscal targets and maintain a financial buffer. Starmer emphasized that the Budget would prioritize living standards and build on economic stabilization efforts, including recent wage increases and interest rate cuts, but did not explicitly address economic growth. Despite Downing Street's insistence on upholding manifesto commitments not to raise taxes on working people, experts suggest that moderate but sustained tax hikes or spending reductions are likely necessary. Speculation about a potential wealth tax has been dismissed by Culture Secretary Lisa Nandy, who reiterated the government’s focus on reducing taxes for working citizens. Overall, the government faces significant fiscal challenges with limited options ahead of the autumn Budget.