Summary: Ghalib Darwish, head of the economic section at Independent Arabia, says that with political turmoil in Downing Street and with crises, raising taxes has become a slogan everywhere, and warnings have come from major financial authorities.

The difficult conditions that Britain is going through have deepened public debt and debt interest, and the economy will not achieve significant growth as expected, and if it does, according to IMF estimates, it will not exceed one percent, and this level is not enough to cover debt interest, putting the country in a terrifying scenario.

In this regard, Ghalib Darwish says that with political turmoil in Downing Street and with crises, raising taxes has become a slogan everywhere, and warnings have come from major financial authorities, and any tax increase will harm the labor market, with up to two million people leaving it if taxes continue to rise over the coming decades, according to an official analysis by the UK Office for Budget Responsibility (OBR).

Hypothetical scenario

Economists stressed that this figure is based on a long-term hypothetical scenario and exceptional circumstances, and does not represent a prediction of what will actually happen, as Darwish explains in a new episode of the series 'Economic Opinion,' and points out that this warning in the office's latest report on financial risks simulates what might happen if the government continues to freeze income tax band thresholds for future decades while wages continue to rise.

Structural pressures

Darwish continues: 'The UK Office for Budget Responsibility (OBR) estimates that if this policy continues unchanged until 2075, the size of the labor force could decline by about two million people. The report highlights the structural pressures that future governments will face, not the outcomes of any specific political or tax program.'

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He added: 'Fears are growing that large tax increases may become inevitable with the next new prime minister, but in reality, the OBR's analysis reflects inevitable long-term structural challenges facing any government that will come to power in the coming years.'

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