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Trump and 'toxic' borrowing costs could force Reeves to hike taxes or cut spending


Published on 2025-01-08 12:20:39 - i
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  • Rachel Reeves is under mounting pressure over a spike in the UK's borrowing costs which is likely to force her to come back for further tax rises or spending cuts. Economists said that the Chancellor was facing a "toxic combination" of circumstances including flatlining growth, high interest rates and geopolitical tensions.

The article from inews.co.uk discusses the economic implications of Donald Trump's potential return to the White House, focusing on how his policies could affect global borrowing costs and tax strategies. Trump's previous term was marked by significant tax cuts and increased borrowing, which could lead to higher interest rates if similar policies are pursued again. Rachel Reeves, the UK's Shadow Chancellor, has expressed concerns about the impact of Trump's economic policies on the UK, particularly in terms of increased borrowing costs due to potential rises in U.S. bond yields. The article also touches on the broader economic environment, where global markets are already dealing with inflation and the aftermath of economic stimulus measures. Reeves suggests that the UK should prepare for these potential changes by focusing on fiscal responsibility and possibly adjusting tax policies to mitigate the effects of higher borrowing costs.

Read the Full i Article at:
[ https://inews.co.uk/news/politics/donald-trump-rachel-reeves-borrowing-costs-tax-spending-3469476 ]