Rachel Reeves nightmare as 'silent tax' set to hit Brits with Treasury grabbing all it can

Rachel Reeves has not ruled out further unleashing a "silent tax" on Brits as the Treasury looks to grab revenue "wherever it can find it". Finance expert Nigel Green, chief executive of the deVere Group warned that the Chancellor has refused to rule out extending the freeze on income tax thresholds, a "stealth measure" that is already dragging more households into higher brackets each year. The expert highlighted that economists estimate that the current freeze, scheduled until 2028, is set to raise tens of billions in additional revenue as wages rise.

Mr Green said: "Threshold creep is a silent tax rise that catches the unwary. Couple that with the possibility of further headline increases and you have a formidable challenge for individuals and businesses alike." The specialist added that Labour's botched attempt to remove winter fuel payments from many pensioners, coupled with Ms Reeves's debut Budget, which raised taxes and strained relations with business leaders, has "eroded her authority".

Mr Green warned that Brits should take action ahead of "inevitable" tax rises outlined in the Chancellor's next Budget, scheduled for November 26.

He said: "This is the moment to review wealth structures, pension contributions, and international planning.

"Waiting until the Budget speech is too late.

"By then the measures will already be locked in, and the cost of inaction will be permanent."

Rachel Reeves said in her conference that she is facing "harsh global headwinds", hinting at further tax rises to come.

The Chancellor insisted that she would keep control of the public finances and "not take risks with the trust placed in us by the British people".

She then claimed that international events had caused "long-term damage" to the UK economy.

Enrique Diaz-Alvarez, chief economist at global financial services firm Ebury, said: "The PMIs of business activity suggested a loss of momentum in the UK economy.

"Both the services and manufacturing indices fell well short of expectations, and while we are seeing modest growth in the former, the contraction in the latter is accelerating.

"Gilt yields continue to hover near multi-decade highs, as markets remain wary of the willingness and ability of the Labour government to close the fiscal gap."

He added: "Further tax hikes at November's Autumn Budget appear increasingly on the cards.

"The main support for sterling comes from the highest interest rates in the G10, but even here the story is not all positive: this reflects the clear stagflationary state of the UK economy, which limits the ability of the Bank of England to provide monetary stimulus without spooking the bond market."