Tax Hikes Not Ruled Out, Chancellor Warns of Economic Pain Ahead

• Chancellor Rachel Reeves refuses to rule out tax hikes after economy shrinks
• UK GDP fell 0.3% in April – the worst monthly drop in 18 months
• £300bn spending spree now under pressure amid fears of autumn Budget cuts
• Tom Church warns: “Everyday shoppers are feeling the squeeze – this could tighten the belt even more”

A fresh tax shock could be heading for British households after Chancellor Rachel Reeves refused to rule out hikes – just days after unveiling a jaw-dropping £300billion spending blitz.

Reeves, facing a bruising economic blow with GDP falling 0.3% in April, was forced to defend her policies amid growing fears the UK could be heading into a spiral of higher taxes and slashed spending.

Pressed about the possibility of tax rises in the autumn Budget, Reeves insisted she wasn’t going to "write four years’ worth of Budgets" in a world where global conditions were so unstable.

Speaking to LBC, the Chancellor said:

"It would be very risky for a Chancellor to write a budget in a world as uncertain as this... We do now have that path to lower borrowing and debt."

The so-called “Klarna Chancellor” – a nod to ‘buy now, pay later’ politics – blamed Donald Trump’s global tariff threats, alongside higher national insurance and minimum wage pressures, for what she called a “challenging” month.

Economists are sounding the alarm after what’s been dubbed “Awful April”, warning that firms are being crushed under rising costs, including the recent NI hike and wage bills.

The British Chambers of Commerce say business investment and recruitment are already being hit. Exports to the US have plunged, and there are whispers of another tax raid to plug the growing hole in public finances.

Political rival Kemi Badenoch didn’t mince her words, calling Reeves’ economic strategy a “war on the private sector” and accusing Labour of ignoring the strain on businesses.

Reeves, meanwhile, insists she’s laser-focused on “national renewal” – but behind the scenes, Treasury officials are said to be reviewing spending lines and tax levers ahead of the next Budget.

Tom Church, Co-Founder of LatestDeals.co.uk the discount code platform said, “Everyday shoppers are already under pressure from rising bills. If more taxes hit household budgets, it’ll be another blow to families trying to stay afloat. Any change in taxation must be matched with real, everyday savings for the public.”