FEARS THAT UK WORKERS WILL SUFFER A 'TAX TIME BOMB'

RACHEL Reeves was accused of creating a “tax time bomb” as Britain’s economic slump continued and experts warned a recession is looming.

- By Jonathan Walker Whitehall Editor

Tories blamed the Chancellor's tax rises after new figures showed the economy shrank by 0.1% in May, following a 0.3% drop in April, with manufacturing and construction suffering most.

But the downturn, coupled with expensive U-turns over winter fuel payments and disability benefits, means Ms Reeves could be forced to impose even more tax increases to balance the books in her autumn Budget, economists said.

Shadow Chancellor Mel Stride also blamed her increases in employers' National Insurance. He said: "Thanks to Labour's reckless choices, the economy actually shrank in May.

"This will pile even further pressure for tax rises in the autumn.

"Labour's costly U-turns on winter fuel and welfare have created a ticking tax time bomb.

"Under Labour, we have seen taxes hiked, inflation almost double, unemployment rise, and growth stagnate.

"With more taxes looming, things will only get worse and working people will pay the price."

The Chancellor joined Sir Keir Starmer and Cabinet colleagues for an away day at the Prime Minister's Chequers country retreat in Buckinghamshire yesterday.

Sir Keir led talks about a "refresh" of his Government following its series of humiliating reversals.

Squeezing

Global trading conditions including US tariffs contributed to the UK's poor economic performance.