Tax & Borrowing Woes: Blick Rothenberg Says It’s A Drop‑In‑The‑Bucket for the UK
Nav: What the numbers say about Chancellor Rachel Reeves and the £857 bn tax haul after a stiff 3.39 % rise is exactly what analysts at Blick Rothenberg are seeing – a bad mix of smaller tax gains and a sky‑high borrowing jump.
What the trade‑press saw in March 2025
- HMRC’s total tax intake climbed to £857 bn – a 3.39 % increase over 2023/24.
- The spike came from fiscal drag that’s nudging more people into higher tax brackets.
- Men‑and‑women workers had a £6 bn drop last year thanks to the 8 % NIC cut (from April 2024).
- Income tax alone up >9%, but Self‑Assessment receipts dipped slightly that March.
Why the weeping registers for the buyer‑side
Robert Salter, a senior director at Blick, says the real blow is that the government borrowed almost £152 bn this year – a whopping £14 bn more than the Office of Budget Responsibility (OBR) predicted.
“The story we’re hearing is simple: the Chancellor will need to tighten the purse or cut spending in the next budget,” Salter warned. “The economy is already strained by global politics, and the new employer NIC hike will stifle any boom you’d hope for.”
Short‑Term & Long‑Term Impact
- Employers are postponing expansion plans and reducing staffing, not because they’re bad business but because the new NIC load is heavy.
- Growth in the UK is stalling for months – a trend that doesn’t bode well for the seasonal economy.
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