Treasury chief says wars and tariffs are harming the UK's economic outlook

LIVERPOOL, England -- Britain’s Treasury chief warned Monday that wars in Ukraine and the Middle East and economic headwinds sparked by U.S.President Donald Trump’s tariffs have worsened the U.K.'s economic outlook since the governing Labour Party won power last year.Chancellor of the Exchequer Rachel Reeves is under pressure to say whether she will raise taxes in her autumn budget on Nov.

26.“In the last year the world has changed, and we are not immune to that change," she told the BBC.“Whether it is wars in Europe and the Middle East, whether it is increased barriers to trade because of tariffs coming from the United States, whether it is the global cost of borrowing, we’re not immune to any of those things.”Reeves hopes to deliver a touch of economic optimism when she addresses the Labour Party’s annual conference in Liverpool later on Monday.Since ending 14 years of Conservative rule in July 2024, the Labour government has struggled to deliver the economic growth it promised.

Inflation remains stubbornly high and the economic outlook subdued, frustrating efforts to repair tattered public services and ease the cost of living.Labour pledged during last year’s election not to raise taxes on working people, but has since hiked levies on employers, and Reeves has not ruled out increasing other forms of tax in her budget.“I’m determined not to increase those key taxes that working people pay,” Reeves said.The Treasury said Reeves' speech will include a pledge to end long-term youth unemployment, and kickstart the U.K.’s sluggish productivity.Under the plan, everyone under 25 who has been unemployed for 18 months will be offered guaranteed paid work.

One in eight 16–24-year-olds in Britain — about 1 million people — is currently not in education, work, or training.Popular ReadsTrump admin live updates: Gov.says 'no need' after Trump directs troops to PortlandSep 28, 1:39 PM4 dead, 8 injured in Michigan church shooting and fire set by...