British Prime Minister Keir Starmer said today that it is necessary to increase taxes in order to reform and stabilize the public services sector in the country, Reuters reported, quoted by BTA.
Starmer, whose Labor party won a landslide victory in Britain's general election on July 4, said the tax hikes would help avoid austerity in key budget sectors.
The British Prime Minister issued a challenge to his political opponents. During a speech he gave in Birmingham, he asked them in absentia how they would deal with the "unprecedented" problems facing Britain.
British Chancellor of the Exchequer Rachel Reeves will present the country's draft budget for 2025 on Wednesday (October 30). She faces the difficult task of presenting a balanced draft budget without a significant tax increase on workers or businesses that would put off many investors. In addition, the British finance minister is not in a position to cut the budgets of key ministries and government agencies, analysts say.
Against this background, in the middle of the month, representatives who are familiar with the situation reported, quoted by DPA, that Rachel Reeves seeks to include in the draft budget of Great Britain a reduction in the expenditure part and an increase in tax receipts by up to 40 billion British pounds.
In July, the Finance Minister announced, quoted by "Sky News", that she had discovered a "black hole". in the expenditure part of the current budget of Great Britain, which is in the amount of 20 billion British pounds. This budget was adopted on the proposal of the previous government of Great Britain, formed by the Conservative Party. She is the main political opponent of the Labor Party, political analysts point out.