From Yahoo Finance: 2025-06-12 10:32:00

Council tax bills in England are set to rise by 5%, the fastest rate in years, with the average band D bill increasing from £2,280 to £2,639. Health spending is projected to make up half of all public services spending by the end of the decade, up from a third in 2010. Businesses faced challenges in April due to tax increases and trade tensions, with UK exports to the US falling by a record £2bn. Most British people feel overtaxed and underserved, with only 5% believing their taxes are well spent. A poll shows 57% support cutting taxes, with 28% strongly in favor. Polling shows Brits are fed up with high taxes and lack of value for money from governments. FTSE 100 and pound rise after US inflation figures meet expectations. UK government borrowing costs fall after US producer price index rises 2.6% in May. Sterling up against dollar amid bets on Fed rate cuts. Bond yields drop as investors seek safety over Trump tariff fears. UK economy faces challenges as pound falls against euro. Rachel Reeves increases NHS budgets, reshaping state with more tax rises predicted. Kemi Badenoch warns of economic death spiral due to Labour’s spending plans. IFS director baffled by spending review, warns of potential tax rises if OBR forecasts are downgraded. Tough decisions ahead for Chancellor amid fiscal constraints. Tesco CEO Ken Murphy has cautioned against further tax increases on retailers, following a £25bn National Insurance hike in the previous Budget. Economists warn of more tax rises after Rachel Reeves’ spending announcement, with concerns over a tax raid on companies. The economy shrank by 0.3% in April, impacting businesses with higher worker costs.

Rachel Reeves’ spending review faced criticism for lacking clear savings guidance. The IFS noted every department faces similar budget cuts, raising doubts about the Chancellor’s plans. Former OBR official Andy King predicts growth forecast cuts, leading to more tax hikes. The OBR’s optimistic forecasts may result in a significant downgrade.

Reeves may struggle to fill a new fiscal hole in the autumn, with limited options to restore fiscal headroom. Andy King warns of challenges in balancing fiscal targets amid economic uncertainties. Tax rises are likely as Reeves navigates financial challenges and economic impacts from recent policy changes. Economists warn that Rachel Reeves may exceed her spending review budget, risking public finances. Health and defense may seek more funds despite generous increases. Nearly half of London businesses expect price hikes, with concerns over government understanding. UK economy faces a tough second quarter, stalled recovery due to rising costs and trade issues. UK stocks fall amid shrinking economy, travel and leisure sectors hit hardest. Economic outlook uncertain, with potential for rapid expansion if right policies are implemented. Tax hikes are a concern for investments in the UK economy. The FTSE 100 is less correlated to the UK economy, but the FTSE 250 is closely related. The value of the pound fell after UK GDP shrank by 0.3% in April. Traders predict a rate cut in August due to the economic slowdown.

Britain’s goods exports to the US dropped by £2bn in April, the largest decline since 1997. Stock markets in London fell slightly after the contraction in the British economy. The manufacturing sector contracted by 0.9% in April due to global trade disruptions and weaker activity is expected in the near term.

Kemi Badenoch criticized the government for a lack of reforms in public services after the spending review. She accused the government of waging war on the private sector. Traders are betting on a rate cut in August with a growing chance of a 85% rate cut. The economy is expected to face challenges due to subdued overseas demand and rising costs. US-EU trade negotiations ending poorly would harm UK economy. Shadow chancellor accuses Rachel Reeves of “economic vandalism” after UK economy shrinks in April. Mel Stride criticizes Labour’s promises of “growth, growth, growth” and warns of tax increases. Reeves blames Trump’s tariff war for shrinking economy, cites uncertainty in exports and production. Britain’s economy faced a significant blow as the services sector contracted by 0.4%, leading to a 0.3% fall in GDP. Economists predict a challenging period ahead due to rising costs and global uncertainty impacting growth. The Chancellor remains focused on delivering jobs and growth to improve economic conditions for working people.

In April, the UK saw its economy shrink by 0.3%, worse than expected, following a 0.7% expansion in the first quarter. This decline was largely attributed to a drop in exports to the US due to new tariffs imposed by Donald Trump. Economists warn of potential tax rises in the upcoming Autumn Budget.

Rachel Reeves expressed disappointment over the economy’s contraction, emphasizing the need for growth to benefit working people. The Chancellor remains committed to delivering on her mission for economic renewal, despite the challenging economic conditions. The UK faces a sobering period ahead with slower growth expected due to escalating costs and global trade uncertainty.



Read more at Yahoo Finance: Reeves accused of ‘making up numbers’ in spending review