JPMAM’s Karen Ward warns Reeves UK is at its tax limit

Karen Ward, JP Morgan Asset Management’s EMEA chief market strategist, has cautioned Chancellor Rachel Reeves that the UK economy is “approaching the limit of what tax it is willing to bear.” (Source: Investment Week)

Speaking at Titan Square Mile’s annual investor conference on 24 September, Ward—who is regularly consulted by the Treasury—advised Chancellor Rachel Reeves against pursuing further tax hikes in the upcoming Autumn Budget.

“You attempted to raise taxes last Autumn to boost spending, and a year on, the financial position has worsened. Any of the taxes currently under consideration would be growth-damaging, leaving you in the same position next year,” Ward warned.

Chancellor Rachel Reeves is set to address Labour members at the party conference in Liverpool today (29 September), but ahead of her speech, she faced questions over a potential VAT increase in November’s Budget.

The issue follows Prime Minister Starmer’s refusal to rule out such a hike, stating the “manifesto stands” in response to BBC questions. Reeves has since acknowledged she no longer adheres to Labour’s previous pledge not to raise taxes, citing changing circumstances including ongoing wars, US tariffs, and rising borrowing costs.

Labour also faces the fiscal challenge of funding campaign promises on pensions, healthcare, and social care, commitments the government “does not have the money for,” Ward noted in her speech last week.

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