Reeves admits NI hike could hit pay rises while markets react to borrowing spree
For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. “It will mean that businesses will have to absorb some of this through profits and it is likely to mean that wage increases might be slightly less than they otherwise would have been.” Ms Reeves also said she did not want to repeat the £40 billion of overall tax rises she implemented in her first Budget “ever again”. I don’t want to repeat a Budget like this ever again, but it was necessary to get our public finances and our public services on a stable trajectory.” Shadow Treasury chief secretary Laura Trott said: “Rachel Reeves confirmed… that her Budget will hit pay for workers. Laith Khalaf, head of investment analysis at AJ Bell, said: “Markets are especially sensitive to the effect chancellors can have on interest rates ever since Kwasi Kwarteng took to the despatch box, and with the 10-year gilt yield now climbing to levels seen in the wake of the mini-budget, it’s fair to ask whether Rachel Reeves’ maiden Budget could cause similar problems. A Downing Street spokeswoman said: “It’s a matter of Government policy not to comment on market fluctuations.” But Tory leadership hopeful Robert Jenrick said: “Reeves promised stability, but her gloom-and-bust Budget has sent borrowing costs soaring and the pound falling.”
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