On Thursday morning the FTSE fell to its lowest level in three months as the Chancellor’s Budget has made trader nervous.
Financial markets are nervous over Labour’s measures announced in the Budget which has sent shockwaves across financial markets.
The FTSE is far from convinced over the £40 plus billion tax hikes to plug the £22 billion financial “black hole” they say the Tories left.
The stock market index fell by 52.9 points on Thursday morning and the FTSE plummeted to it lowest level since 8 August to 8.106.73 for short while.
Rachel Reeves told the BBC on Thursday morning, “This is not the sort of Budget we would want to repeat.
Paul Johnson, director of the IFS warned that taxes might need to be raised again in a few years’ time if the Budget fails to increase growth.
Johnson said, “The first gamble is that a big cash injection for public services over the next two years will be enough to turn performance around, and that many of the temporary spending pressures won’t persist.
If she’s wrong about that, and spending pressures don’t dissipate after two years, then to avoid cutting unprotected areas she may well need to come back with another round of tax rises in a couple of years’ time – unless she gets lucky on growth.
