Chancellor Reeves urged to raise taxes ahead of Spring Statement

Chancellor Rachel Reeves is under pressure to raise taxes in her upcoming Spring Statement on March 26 to address a deteriorating economic outlook, characterized by higher interest rates and lower tax revenues. The Resolution Foundation has suggested that extending the freeze on personal tax thresholds could generate around £8 billion without negatively impacting lower-income households in the short term, as it would not take effect until 2028. Meanwhile, Reeves is also considering amending self-assessment tax rules and increasing penalties for late submissions to raise additional revenue without directly increasing taxes on working people. Critics, including the opposition party PASOK-KINAL in Greece, emphasize the need for more substantial tax reforms rather than mere campaign promises. As Reeves navigates these challenges, the focus remains on balancing fiscal responsibilities while protecting the living standards of vulnerable populations.