"The Chancellor is boxed in by her own numbers and by political reality,"
"Markets will demand discipline, but her party will demand action. The path of least resistance is higher taxation."
"Investors should take seriously the risk of a broad-based tax grab,"
"When gilt yields are this high and the deficit this wide, the Treasury will look for revenue wherever it can find it."
Rachel Reeves faces intense pressure to reconcile fiscal discipline with political demands to counter a rising populist right. Ten-year gilt yields near 4.75% and a £20 billion public-finance gap tighten fiscal constraints. Productivity downgrades from the Office for Budget Responsibility and reversed welfare savings have deepened the deficit. Internal Labour dissent has grown after benefit changes and tax rises. Reform UK polling strength heightens electoral risk. Market commentators warn that high yields and a wide deficit increase the likelihood of broader tax measures in the November Budget to shore up public finances.
Read at London Business News | Londonlovesbusiness.com
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