UK Chancellor Rachel Reeves may need to raise taxes or implement deeper public spending cuts after borrowing exceeded forecasts by nearly £15bn, totaling £151.9bn for the last financial year, primarily due to rising borrowing costs linked to Donald Trump’s trade policies. Economists suggest that to adhere to fiscal rules, Reeves must consider tax increases in the upcoming autumn budget, especially after recent cuts to benefits and public spending. Meanwhile, public sector debt is at 95.8% of GDP, with concerns growing over the impact of ongoing economic pressures and a contracting business activity index.
