Ex-BOE Official Predicts Labour Tax Hikes Up to £25 Billion (1)

UK Chancellor Rachel Reeves could use an imminent review of Labour’s fiscal inheritance to justify tax increases of up to £25 billion ($32.3 billion) in the upcoming budget, according to former Bank of England policymaker Michael Saunders.

Saunders, who is now senior economic adviser at Oxford Economics, expects Reeves to “kitchen sink” all the bad news to “allow her to announce corrective measures to return the public finances to a sustainable path and blame it all on the failings of her Conservative predecessors.”

That would give her cover to announce £10 billion to £25 billion of tax rises, largely ...