Britain’s Finance Minister and Chancellor, Rachel Reeves
Despite being among the countries with highest tax liabilities for workers and employers, the United Kingdom is set to increase taxes for workers in November 2025. Britain’s Chancellor Rachel Reeves said she was looking at both tax rises and spending cuts for her budget on November 26.
Economic forecasters expect Reeves will need to raise about 30 billion Pounds sterling in November 2025. UK must raise funds through tax increases after the government’s borrowing costs jumped by more than expected, a plan to cut welfare costs was dropped and signals that growth forecasts will need to be lowered.
“Challenges are being thrown our way…I won’t duck those challenges,” “Of course, we’re looking at tax and spending as well, but the numbers will always add up with me as chancellor.” Reeves told Sky News on Wednesday.
Reeves has repeatedly said she is committed to “economic responsibility” and will stick to her fiscal rules, the main one of which is her target of balancing day-to-day public spending with tax revenues by 2030.
Before July 2024’s election, Reeve’s Labour party promised not to raise value added tax (VAT), national insurance contributions or the rates of income tax, but there is growing speculation those promises may be broken.
UK current income tax rate ranges from 20% for those earning below £50,000 Pounds and up to 45% income tax deductions for those earning above £125,000 pounds per annum. The country allows personal tax allowance of £12,570 Pounds.
