Rachel Reeves, the UK Chancellor, has indicated that tax increases in the upcoming autumn budget are likely due to the government’s decision to scale back welfare reforms. She warned cabinet ministers that these tax rises could be more challenging than the £40 billion package she implemented in November. The government faces pressure to find additional revenue sources, with middle earners expected to bear a larger tax burden. Proposals discussed include taxing capital gains and dividends at the same rate as wages, introducing National Insurance contributions on these incomes, and considering wealth taxes, financial transaction taxes, and windfall taxes on profiteers. Concurrently, the Office for Budget Responsibility (OBR) reported that while climate change poses increasing economic risks to the UK, transitioning to net zero emissions is now less costly than previously estimated. However, net zero policies are projected to cost taxpayers approximately £800 billion by 2050, including £30 billion annually in technology investments and lost tax revenues. This financial burden has raised concerns about potential increases in council tax, particularly in London, to fund regional redistributions. The government is grappling with balancing costly commitments, including climate change mitigation and welfare spending, which is contributing to expectations of further tax rises.