UK’s tax-and-spend Budget gives businesses cause for concern

[LONDON] British Chancellor of the Exchequer Rachel Reeves delivered her first Budget this week, one that has already impacted the stock market and which business leaders have described as a “gamble”.

Some observers have expressed concern that Reeves – a 45-year-old who became the first female chancellor to deliver a UK Budget – has adopted what they say is a “shock and awe” approach.

They fear the implications of the massive £40 billion (S$68.5 billion) annual tax rise, with the Budget putting tax on a path to 38.2 per cent of the UK’s gross domestic product – the highest level ever.