UK Chancellor Reeves Rules Out Further Tax Hikes for Defence Spending
UK Chancellor Rachel Reeves has signaled her reluctance to raise taxes again to fund increased defence spending, stating she would 'prefer not' to repeat the substantial tax hikes implemented in her previous two budgets. Speaking at an International Monetary Fund summit in Washington DC, Reeves emphasized that the focus should be on the efficiency of expenditure rather than the total 'quantum' of funding. She defended her record, claiming her government has delivered the largest uplift in defence spending since the end of the Cold War, partly by reallocating funds from the overseas development budget. This stance comes amid criticism from former NATO chief Lord Robertson, who accused the government of 'corrosive complacency' regarding military capabilities. Reeves also ruled out additional borrowing, citing high debt servicing costs exacerbated by the ongoing conflict in Iran. She argued that maintaining economic stability by keeping inflation and interest rates down is crucial for supporting British families and businesses, linking her fiscal caution to the need for de-escalation in international conflicts.
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UK Chancellor Reeves Rules Out Further Tax Hikes for Defence Spending
UK Chancellor Rachel Reeves has signaled her reluctance to raise taxes again to fund increased defence spending, stating she would 'prefer not' to repeat the substantial tax hikes implemented in her previous two budgets. Speaking at an International Monetary Fund summit in Washington DC, Reeves emphasized that the focus should be on the efficiency of expenditure rather than the total 'quantum' of funding. She defended her record, claiming her government has delivered the largest uplift in defence spending since the end of the Cold War, partly by reallocating funds from the overseas development budget. This stance comes amid criticism from former NATO chief Lord Robertson, who accused the government of 'corrosive complacency' regarding military capabilities. Reeves also ruled out additional borrowing, citing high debt servicing costs exacerbated by the ongoing conflict in Iran. She argued that maintaining economic stability by keeping inflation and interest rates down is crucial for supporting British families and businesses, linking her fiscal caution to the need for de-escalation in international conflicts.
The Standard