The Papers: 'Panic at No 10' and investors 'lose faith' in Budget
Summary
Several UK newspapers report that there is concern about the upcoming Budget, as the Chancellor, Rachel Reeves, appears to have backed away from raising income taxes. This decision has reportedly caused worries among investors and led to an increase in UK borrowing costs. The Prime Minister, Sir Keir Starmer, is trying to manage internal party issues related to the Budget changes.Key Facts
- The Chancellor, Rachel Reeves, is backing away from raising income taxes in the upcoming Budget.
- Investors have reportedly lost confidence, leading to a rise in UK borrowing costs.
- A "stealth tax" refers to freezing income tax thresholds, which will remain unchanged until 2030.
- This freeze might result in state pension recipients paying income tax starting next year.
- The decision not to raise income taxes follows better-than-expected public finance forecasts.
- Market unease is partly attributed to internal political disagreements within the government.
- Property tax changes in the Budget could affect high-value properties with an additional surcharge.
- The threshold freeze is expected to raise £7.5 billion as inflation pushes workers into higher tax brackets.
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