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Rachel Reeves says she is looking at tax rises ahead of Budget
Paul SeddonPolitical reporter ,
Joshua NevettPolitical reporter and
Henry ZeffmanChief political correspondent
BBCRachel Reeves has said she is looking at “further measures on tax” ahead of next month’s Budget, in the clearest sign yet that tax hikes are on the way.
The chancellor also said she was considering further measures on public spending, in a bid to put the UK’s finances on a firmer footing.
Speaking to broadcasters ahead of an international finance summit in the US, she added that she would “continue to prioritise economic and fiscal stability”.
The chancellor is widely expected to raise taxes at the Budget on 26 November, after gloomy economic forecasts and a series of U-turns on welfare cuts made it harder for her to meet her own tax and spending rules.
Reeves announced tax rises worth £40bn a year at her first Budget last November, including hikes to payroll taxes paid by employers, and insisted she would not have to repeat the move in subsequent years.
But the chancellor is now facing the prospect of another repair job to the public finances, after rises to borrowing costs since then and expected downgrades to the productivity of the UK economy.
Some analysts have estimated Reeves will have to raise taxes or cut spending by around £20bn to meet her “non negotiable” financial rules.
These rules mean her plans must be projected to get government debt falling as a share of national income by 2029-30, and day-to-day government costs must be paid for by tax income rather than borrowing.
Speaking to broadcasters in Washington DC ahead of the the International Monetary Fund (IMF) annual meeting, the chancellor said: “I’ve always been very clear that we will continue to prioritise economic and fiscal stability in the UK.”
Asked whether she would have to raise taxes, she replied: “As we get the forecast, and as we develop our plans, of course we are looking at further measures on tax and spending, to make sure that the public finances always add up.”
‘Severe’ Brexit impact
In an earlier interview with Sky News, Reeves said austerity policies and former Prime Minister Liz Truss’s mini-budget had damaged the UK economy.
She also sought to blame Brexit, adding that the economic effects of the UK’s exit from the EU had been “severe and long-lasting”.
She cited the government’s attempts to strike food regulation and youth visa deals with the EU as moves that were “undoing some of that damage”.
Reeves and her Treasury ministers have so far been tight-lipped on which taxes could potentially go up.
The chancellor has not ruled out continuing to freeze income tax thresholds beyond the 2028 date fixed by the last government, allowing more people to be dragged into higher bands as their wages rise over time.
Reports have also suggested she is looking at property taxes, including making more landlords pay National Insurance on rental income.
There has also been speculation that betting companies could face higher taxes, with the chancellor recently saying she thought “there is a case for gambling firms paying more”.
In her speech to Labour conference last month, Reeves pledged to keep “taxes, inflation and interest rates as low as possible” – but has reduced her options by promising at the last election not to hike the biggest revenue-raising taxes.
Labour promised in its 2024 manifesto not to raise income tax rates, VAT, a sales tax, and corporation tax, which is paid by companies on their profits.
The party also promised not to raise National Insurance – prompting a row last autumn when it announced the rise in the contributions paid by employers.
‘Tax doom loop’
Reeves had been widely expected to hike taxes at the Budget, but her comments in Washington were also notable for explicitly raising the prospect that tax rises could be accompanied by cuts to public spending.
However, many Labour MPs believe that spending cuts in most areas would be politically unviable after the failed attempts at welfare cuts earlier this year, with a welfare overhaul put on ice pending a ministerial review.
The day-to-day budgets of government departments were only recently set for the next three years at June’s spending review, although the government could promise to cut spending in four or five years.
The Conservatives opened up a clear dividing line on the issue at their conference last week, pledging to slash public spending by £47bn a year if they win the next election through cuts to welfare, the civil service and foreign aid.
On Monday, the International Monetary Fund (IMF) said the UK was set to be the second-fastest-growing of the world’s most advanced economies this year.
But the IMF also predicted the UK will face the highest rate of inflation among G7 nations both this year and next, driven by rising energy and utility bills.
Shadow chancellor Sir Mel Stride said the government needed to get a grip on public spending, rather than raise taxes again.
He said: “Be in no doubt, this tax doom loop is down to the Chancellor’s economic mismanagement.
“Under Rachel Reeves we have seen inflation double, debt balloon, borrowing costs at a 27-year high, and taxes up – with more pain on the way in the autumn.”
The president also said the US will continue to blockade Iran’s ports until peace talks progress.
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High-Skilled Immigration: US tightens screws on high-skilled immigration: Denial rates surge across key visa categories – The Times of India
For Indian tech and medical professionals, researchers and even global achievers eyeing to work in the US, the path is becoming increasingly uncertain. New data shows that even the most elite immigration routes, once seen as relatively stable, are now facing sharply higher rejection rates, signalling a broader tightening of legal migration pathways.The US has significantly increased denial rates for high-skilled immigration categories in fiscal 2025 (year ending Sept 30, 2025), reflecting a policy-driven shift to restrict legal migration even for highly qualified professionals according to a new analysis by the National Foundation for American Policy (NFAP).“The latest data show that Trump administration officials intend to make it difficult for even the most highly skilled individuals from around the world to work in the US,” said Stuart Anderson, executive director of NFAP.A change of this magnitude indicates a crackdown on approvals, the analysis noted, pointing to a sharp rise in rejection rates despite no formal regulatory changes.
Green card routes for top talent see sharpest rise
The steepest increases are in employment-based green card categories used by highly accomplished professionals. The increase in denials occurred within a single year, despite no new regulations indicating a shift in adjudication standards.
- EB-1 (extraordinary ability): Denial rates nearly doubled from 25.6% in Q4 FY2024 to 46.6% in Q4 FY2025
- EB-2 National Interest Waiver (NIW): Denials rose from 38.8% in Q4 FY2024 to 64.3% in Q4 FY2025
Over a longer period, the trend is even sharper: NIW denial rates rose from 4.3% in FY2022 to 44.8% in FY2025, states the report.
Temporary work visas also tightening
Denial rates have also increased across key temporary work visa categories, particularly toward the end of FY2025:
- O-1 visas: Denial rates rose from 5.0% in Q4 FY2024 to 7.3% in Q4 FY2025 . These visas are meant for individuals with extraordinary ability in fields such as science, technology, arts, education, business or sports. It is typically used by top researchers, startup founders, artists and senior professionals with a strong record of achievement.
- L-1A visas: Denial rates increased from 8.0% in Q4 FY2024 to 9.6% in Q4 FY2025. These visas are used by multinational companies to transfer senior executives or managers from an overseas office to a US office. It is a key route for leadership mobility within global firms.
- L-1B visas: Denial rates rose from 8.1% in Q4 FY2024 to 9.2% in Q4 FY2025. These visas are also for intracompany transfers, but specifically for employees with specialised knowledge and are often used for technical experts and niche-skilled staff.
H-1B remains stable—but pressure persists
The H-1B visa, widely used by Indian IT professionals, has not seen a comparable increase in denial rates, the denial rates remained stable at around 2.0%–2.1% in FY2025. This is attributed to a 2020 legal settlement, which limits changes to adjudication standards without formal rulemaking.However, policy pressure continues through other measures. President Trump has signed an executive order mandating a $100,000 fee to petition for an H‑1B worker outside the US. Further, selection in the lottery for H-1B cap visas is linked to wages and there is a proposal to increase wages across all levels.
Backlogs and delays worsen the squeeze
For the Indian diaspora, these statistics are worrying. Between Q4 FY2024 and Q4 FY2025, backlogs rose across key immigration filings. Pending I-129 petitions—used by employers to sponsor non-immigrant workers such as H-1B, L-1 and O-1 visa holders — increased by more than 54,000. The backlog for I-140 petitions, which are employer-sponsored applications for employment-based green cards, rose by 58,400.At the final stage, delays also deepened: the backlog for I-485 applications—filed by individuals to adjust status to permanent residence (green card) within the US—continued to grow.
Bottom line
The data signals a clear shift: legal immigration pathways are narrowing over FY2025, particularly in the latter half of the fiscal year, driven by stricter adjudication rather than new laws.
UK inflation lifted to its highest since December after a sharp jump in diesel and petrol prices caused by the conflict in the Middle East, according to official figures.
Chancellor Rachel Reeves said the Iran crisis was “not our war, but it is pushing up bills for families and businesses” as a result.
The rate of Consumer Prices Index (CPI) inflation increased to 3.3% in March from 3% in February, the Office for National Statistics said.
The increase was in line with predictions from economists.
Higher motor fuel was the main driver of the acceleration in inflation, increasing by 8.7% month-on-month – the largest increase since June 2022, shortly after the Russian invasion of Ukraine.
The ONS found that the average price of petrol rose by 8.6p per litre between February and March to 140.2p per litre. This marked the highest price since August 2024.
Diesel prices meanwhile increased by 17.6p per litre in March to an average of 158.7p per litre, the highest price since November 2023.
Office for National Statistics chief economist Grant Fitzner said: “Inflation climbed in March, largely due to increased fuel prices, which saw their largest increase for over three years.
“Air fares were another upward driver this month, alongside rising food prices.
“The only significant offset came from clothing costs, where prices rose by less than this time last year.”
The data revealed that the cost of air travel also increased significantly, with inflation of 14.5% compared with the same month last year.
The rise in air fares, which analysts have partly linked to the early timing of the Easter holidays, was the highest since July last year.
Meanwhile, food and non-alcoholic drink prices were up 3.7% year-on-year in March, accelerating from 3.3% inflation in the previous month.
This included another acceleration in the price of sweets and chocolates, which were up 10.6% year-on-year.
Elsewhere, clothing and footwear had a downward pressure on inflation, as prices dipped 0.8% for the month.
Sales and discounting activity pulled inflation in the category to its lowest level since March 2021.
The rise in the overall rate of inflation drives the UK further away from the 2% inflation target set by the Government and the Bank of England.
Ms Reeves said: “We’re acting to protect people from unfair price rises if they occur to bring down food prices at the till, and are boosting long-term energy security — building a stronger, more secure economy.”
James Smith, developed markets economist at ING, said: “The latest rise in UK headline CPI tells us virtually nothing about the scale and duration of the inflation wave to come.
“The Bank of England is still flying blind, with the conflict unresolved, but the limited amount of survey data available so far suggests little cause for alarm on inflation.”
Anna Leach, chief economist at the Institute of Directors, said: “As inflation has come in in line with revised expectations, and given yesterday’s labour market data which showed a fall in vacancies and further downward progress in wage growth, interest rates should hold at next week’s MPC (Monetary Policy Committee) meeting.
“But there remains tremendous uncertainty over the outlook for energy supply and prices.”
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