Leading economists have issued warnings that the United Kingdom, under Chancellor Rachel Reeves, is at risk of facing a debt crisis reminiscent of the 1970s, potentially requiring a bailout from the International Monetary Fund (IMF). Reports highlight a £50 billion shortfall in the public finances, soaring borrowing costs, and inflation pressures contributing to a ballooning national debt, which has reached approximately £2.7 trillion. The fiscal challenges have raised concerns about the government's ability to meet pension and benefit obligations. In response to a £40 billion budget gap, the Treasury is considering new tax measures, including a proposed national insurance contribution on rental income, expected to generate around £2 billion. Critics argue that such tax hikes could exacerbate economic difficulties, particularly in the rental sector, potentially driving up rents and reducing property availability. The situation has drawn comparisons to Britain's 1976 economic crisis, with experts warning that without a change in fiscal policy, the UK could face a similar humiliating rescue by the IMF.
🇬🇧 Reeves Eyes Tax Raid On Landlords To Raise £2bn ▫The Treasury is considering a plan to apply contributions on the ‘unearned income’ as Rachel Reeves addresses a £40bn hole in public finances ▫@breeallegretti #frontpagestoday #UK @thetimes https://t.co/oFVqVd6OTU
Latest kite to be flown by Chancellor Reeves in the scramble to find extra revenues: national insurance on rental incomes. It would bring in a pittance and undermine the rented sector on which more and more people depend. But, hey, ho, what does that matter when you’re
🇬🇧 The Coming Crash ▫Something's got to give, : the markets have had enough ▫@Simmons__ ▫https://t.co/54kdkdtqxM #frontpagestoday #UK @spectator https://t.co/DRW9uYErqn