Tax hikes targeting wealth have become more likely because of the spike in the UK’s borrowing costs, experts have said.
Economists and City figures warned that Andy Burnham and Chancellor John Healey would have to raise taxes by up to £15bn in the Budget to restore depleted fiscal buffers.
One even claimed the Prime Minister faced a Liz Truss-style “market meltdown” unless he got a “grip” on the UK’s bond prices.
The borrowing costs of governments around the world have jumped in recent days after renewed hostilities between the US and Iran pushed up energy prices, leading to expectations that inflation, and therefore interest rates, will be higher for longer.
Why Britain’s cost of borrowing is higher
