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LONDON DAILY ARCHIVE

Chancellor Reeves Faces Mounting Economic Challenges

Rising borrowing and inflation complicate fiscal policy decisions

11 July 2025 · 23:08 UTC

Chancellor Rachel Reeves is confronting escalating economic difficulties as borrowing increases and inflation remains high.

The recent contraction in the UK economy adds to the pressure, potentially necessitating tax hikes in the upcoming autumn budget to address the fiscal shortfall.