Chancellor Rachel Reeves could be pushed into breaking Labour’s commitment not to raise taxes on workers, as escalating trade tensions initiated by US President Donald Trump put Britain’s economic recovery at risk, according to EY Item Club.
Analysis from the EY Item Club has warned that the US president's tariff plans could dent the UK's economic growth and discourage business investment. The independent economic forecaster has downgraded its UK GDP growth projection for 2025 from 1.6% to 0.9%, citing the likely impact of US tariffs on global trade and business confidence. IMF slashes world growth forecasts as global economic system enters 'new era' The potential shortfall in tax revenues could erode the £9.9bn of headroom that Reeves has maintained under Labour's fiscal rules. EY Item Club chief economic adviser M...
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