Tue Nov 26 13:55:35 UTC 2024: ## UK Chancellor Reeves Reassures Businesses, Rules Out Further Tax Hikes

**London, November 26, 2024** – UK Chancellor of the Exchequer Rachel Reeves addressed concerns from British businesses on Monday, assuring them that no further tax increases are planned for the remainder of the current Parliament. This follows the Labour government’s October 30th budget, which included significant tax hikes for both companies and individuals to address a reported £22 billion public finance shortfall inherited from the previous Conservative administration (a figure which has been disputed).

Reeves emphasized that public services will also be expected to operate within their existing budgets, with no additional funding forthcoming. “We’ve drawn a line under… putting our public finances back on a firm footing and we’ve now set the budget for public services for the duration of this Parliament,” she stated at the Confederation of British Industry (CBI) conference.

The October budget saw a £70 billion increase in spending planned for 2026-27, alongside a £40 billion tax increase. This included a £25 billion rise in employer National Insurance contributions (a 1.2% increase from next year), as well as changes to taxation of foreign assets and income for non-domiciled residents, a capital gains tax increase, and a higher windfall tax on energy companies.

However, some businesses remain apprehensive. Salman Amin, CEO of Pladis (owner of McVitie’s biscuits), expressed concerns that the increased cost of employment is making the UK a less attractive investment destination. The cost of living crisis and economic uncertainty were key factors in the July 5th general election which saw the Conservative Party ousted after 14 years in power.

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