LONDON ¨C Rachel Reeves may have placated the bond market with her budget on Wednesday, but higher taxes for Britons on everything from milkshakes to electrical vehicles are unlikely to lift the gloom around the country, or her party, any time soon.
British finance minister Reeves announced more than ?26 billion ($34 billion) in tax rises, on top of the ?40 billion she raised last year, prompting the official budget forecaster to warn of a large hit to growth in living standards. The chaotic run-up to the budget, with Britain¡¯s fiscal watchdog accidentally posting all the main details online before Reeves had even spoken, also did little to convince Labour¡¯s lawmakers that their struggling government could get its act together.
Reeves¡¯ Labour Party was elected in a landslide in 2024 but now routinely polls below 20%, with questions growing as to whether Prime Minister Keir Starmer can remain in power beyond what are expected to be difficult local elections next May.
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