BoE warning

BoE warns of Budget tax concerns
The Bank of England says fears of further tax increases are negatively impacting the economy. The Bank's agents, who speak to business leaders across the country, said bosses have voiced concern over potential tax rises in the upcoming Budget. Reflecting on why inflation is almost double the Bank's 2% target, Governor Andrew Bailey cited the increase in employer National Insurance contributions "and pay growth in sectors with a large share of employees at or close to the National Living Wage." Economists estimate that Rachel Reeves needs to identify £20bn to £50bn in tax increases or spending cuts as she looks to plug a gap in public finances.