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Rachel Reeves announced some 40 billion
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pounds in tax Rises at her first budget
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in October now warnings of lackluster UK
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growth could prompt the chancellor to
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deliver a painful sequel this year one
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top bank has warned what's this all
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about German investment outfit Deutsche
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Bank has warned its investors that UK
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growth is likely to fall below
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predictions from the office for Budget
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responsibility obr made in October the
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organization is cautioning that Reeves
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could have to hike taxes again after the
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UK economy proved sluggish at the end of
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last year what's more Traders have
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reigned in their bets on interest rate
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Cuts in the next 12 months meaning big
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revisions to the ob's macroeconomic
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projections are likely the bank added
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what could it mean well Reeves has
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pledged as one of her fiscal rules to
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cover day-to-day government spending via
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tax revenue and only to borrow to invest
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but if stagnant economic growth means
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not enough cash is coming into the
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treasury to fund government activity she
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would be forced to bring in additional
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tax Rises to avoid borrowing more to
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plug the gas and thereby breaking her
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fiscal rule her initial budget raised
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employers National Insurance
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contributions which sparked outcry from
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businesses and was branded a tax on jobs
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and the chancellor was forced to insist
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the move was a once in a parliament
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reset and rule out coming back for more
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so any change in tune would be awkward
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for her what's been said Sanjay Roger
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Deutsche bank's Chief UK Economist
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cautioned more borrowing and tax Rises
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we think will be likely this year he
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added we think the chancellor will
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likely need to lift taxes at least one
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more time Following last year's historic
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tax raising event Shadow Chancellor Mel
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stride has warned business confidence
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continues to dive and he claimed labor
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have driven our economy into a ditch
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prime minister K dama has also declined
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to repeat his Chancellor's words and
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rule out further tax hikes in the event
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of unforeseen circumstances and since
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before taking office the labor
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government has said economic growth is
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its number one Mission and aims to raise
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living standards across the UK what do
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you make of the bank's warning about tax
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hikes let us know in the comments and
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