UK's Treasury chief set to raise taxes once again in her second budget

LONDON (AP) — Following weeks of speculation, Britain's unpopular Labour government will deliver its second budget later Wednesday since it returned to power in a landslide election victory in July 2024 after 14 years in opposition.

Treasury chief Rachel Reeves, the first woman to hold the post of Chancellor of the Exchequer, is set to tell lawmakers that more tax-raising measures are necessary to plug a hole in the public finances.

Reeves said much the same at her first budget a little more than a year ago. That budget, she had insisted, would be the one and only big tax-raising budget in this parliamentary term, which is due to run to 2029.

Unfortunately for Reeves, the British economy, the world's sixth-largest, is not doing as well as she hoped, with many critics blaming her decision last year to slap taxes on business. Though there were signs that the economy was on the mend in the first half of the year when it was the fastest-growing among the Group of Seven leading industrial nations, it's faltered again.

“The Chancellor faces a delicate balancing act of conveying fiscal stability while advancing the growth agenda,” said Peter Arnold, chief economist at consulting firm EY U.K.

False dawns have been a regular feature of the British economy since the global financial crisis of 2008-9. If the economy had kept growing at pre-crisis levels, it would be nearly a quarter bigger. That's a lot of lost activity — and a lot of lost tax revenue going into the Treasury's coffers.

In addition to the long-term costs of the financial crisis, Britain’s public finances have been further squeezed, like others, by the costs of the COVID-19 pandemic, the Russia-Ukraine war and U.S. President Donald Trump’s global tariffs. The U.K. bears the extra burden of Brexit, which has knocked billions off the economy since the country left the European Union in 2020.

Meanwhile, Reeves has a bunch of spending commitments, including making up for a series of about-turns on planned welfare cuts and the likely ditching of a cap on benefits paid out to children from larger families. She also wants to help out with the cost of living as inflation remains stubbornly high. Measures such as freezing rail fares, or cutting green taxes on energy bills, don't come cheap.

All in all, economists think that she will have to find something like 20-30 billion pounds ($26-39 billion). With a manifesto-busting, but simple, increase in income tax seemingly ruled out despite weeks of frenzied speculation, Reeves will likely have to raise money from smaller, and more fiddly, taxes.

The main measure anticipated is a further freeze in the levels at which individuals pay Britain's different tax levels, meaning as wages rise more people fall into higher tax brackets. Other potential changes include a mansion tax on high-valued properties, changes to the capital tax regime and the generous provisions for private pensions.

Britain's Chancellor of the Exchequer Rachel Reeves hold up her ministerial red box as she poses with members of her Treasury team on the doorstep of 11 Downing Street,before heading to the House of Commons to deliver her Budget speech in London, Wednesday, Nov. 26, 2025.(AP Photo/Thomas Krych)

Britain's Chancellor of the Exchequer Rachel Reeves departs 11 Downing Street with her ministerial red box before heading to the House of Commons to deliver her Budget speech in London, Wednesday, Nov. 26, 2025. (AP Photo/Kirsty Wigglesworth)

Britain's Chancellor of the Exchequer Rachel Reeves poses on the doorstep of 11 Downing Street with her ministerial red box before heading to the House of Commons to deliver her Budget speech in London, Wednesday, Nov. 26, 2025. (AP Photo/Kirsty Wigglesworth)

Frames pose with placards demonstrating against inheritance tax in trafalgar Square, ahead of Britain's Chancellor of the Exchequer Rachel Reeves delivering the governments annual spending budget, in London, Wednesday, Nov. 26, 2025. (AP Photo/Thomas Krych)

The front door to 11 Downing Street, official home of Britain's Chancellor of the Exchequer Rachel Reeves, who will deliver her governments spending plans later Wednesday to Parliament, in London, Wednesday, Nov. 26, 2025. (AP Photo/Frank Augstein)

Britain's Chancellor of the Exchequer Rachel Reeves departs 11 Downing Street with her ministerial red box before heading to the House of Commons to deliver her Budget speech in London, Wednesday, Nov. 26, 2025.(AP Photo/Frank Augstein, Pool)

Britain's Chancellor of the Exchequer Rachel Reeves poses on the doorstep of 11 Downing Street with her ministerial red box before heading to the House of Commons to deliver her Budget speech in London, Wednesday, Nov. 26, 2025. (AP Photo/Kirsty Wigglesworth)

Britain's Chancellor of the Exchequer Rachel Reeves poses on the doorstep of 11 Downing Street with her ministerial red box before heading to the House of Commons to deliver her Budget speech in London, Wednesday, Nov. 26, 2025. (AP Photo/Kirsty Wigglesworth)

FILE - Britain's Chancellor of the Exchequer, Rachel Reeves, holds up the traditional red ministerial box containing her budget speech, as she poses for the media outside No 11 Downing Street, before departing to the House of Commons to deliver the budget in London, Wednesday, Oct. 30, 2024. (AP Photo/Kirsty Wigglesworth, File)

FILE - Britain's Chancellor of the Exchequer, Rachel Reeves, holds up the traditional red ministerial box containing her budget speech, as she poses for the media outside No 11 Downing Street, before departing to the House of Commons to deliver the budget in London, Wednesday, Oct. 30, 2024. (AP Photo/Kirsty Wigglesworth, File)

FILE - Britain's Chancellor of the Exchequer, Rachel Reeves, holds up the traditional red ministerial box containing her budget speech, as she poses for the media outside No 11 Downing Street, before departing to the House of Commons to deliver the budget in London, Wednesday, Oct. 30, 2024. (AP Photo/Kirsty Wigglesworth, File)

DENVER (AP) — Marcus Pettersson scored with 5:39 remaining, Brock Boeser had a hat trick and the last-place Vancouver Canucks blew a four-goal lead before beating the NHL-leading Colorado Avalanche 8-6 on Wednesday night.

The Canucks, who entered the game 58 points behind the Avalanche, scored in all sorts of ways, including 29 seconds into the game, short-handed, on the power play and into an empty net to snap a six-game slide.

They led 6-2 in the second only to see Colorado tie it up with 6:02 left. Just 23 seconds later, Pettersson knocked in his first goal since November. Boeser sealed it by lining the puck down the ice and into an empty net.

Teddy Blueger scored twice, while Max Sasson and Jake DeBrusk also added goals to spoil a night in which Nathan MacKinnon became the first player this season to reach 50 goals. Vancouver took advantage of the Avalanche juggling their defensive pairings with Cale Makar sidelined by an upper-body injury.

Kevin Lankinen made 24 saves.

Sam Malinski scored twice, while Gabriel Landeskog, Parker Kelly and Brent Burns also scored. MacKinnon notched his second 50-goal campaign of his career with his score early in the first.

Colorado goaltender Mackenzie Blackwood was pulled with 4:39 left in the second after allowing six goals on 19 shots. Scott Wedgewood stopped five shots in relief.

The Avalanche were rolling after a 9-2 win over Calgary on Monday.

Before fans had a chance to settle into their seats, the Canucks were up 1-0. Sasson's goal 29 seconds into the game was the fastest by the Canucks since Oct. 22, 2024 (21 seconds).

Burns had a goal and an assist as he played in his 999th straight game. The all-time Ironman streak belongs to Phil Kessel, who skated in 1,064 consecutive games.

Canucks: At Minnesota on Thursday.

Avalanche: At Dallas on Saturday.

AP NHL: https://apnews.com/hub/nhl

Vancouver Canucks center Teddy Blueger, front, scores a goal past Colorado Avalanche goaltender MacKenzie Blackwood in the first period of an NHL hockey game, Wednesday, April 1, 2026, in Denver. (AP Photo/David Zalubowski)

Colorado Avalanche center Nathan MacKinnon reacts after scoring his 50th goal of the season in the first period of an NHL hockey game against the Vancouver Canucks Wednesday, April 1, 2026, in Denver. (AP Photo/David Zalubowski)

Vancouver Canucks right wing Brock Boeser, left, collects the puck as Colorado Avalanche left wing Joel Kiviranta defends in the second period of an NHL hockey game, Wednesday, April 1, 2026, in Denver. (AP Photo/David Zalubowski)

Vancouver Canucks center Linus Karlsson, left, congratulates center Max Sasson after his goal against the Colorado Avalanche in the first period of an NHL hockey game Wednesday, April 1, 2026, in Denver. (AP Photo/David Zalubowski)