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Tax rates in the UK are set to steadily rise in the future as mounting public spending pressures leaves the Government facing tough tax choices, according to experts. Economists for KPMG said the second half of 2025 was looking more uncertain compared to its unexpectedly strong start.

The accountancy giant is forecasting UK gross domestic product (GDP) to rise by 1.2% over 2025 and 1.1% in 2026.

Consumers are expected to remain cautious in relation to spending while uncertainty about trade policy continues to pose a risk to levels of business investment, according to its latest UK Economic Outlook report.

Yael Selfin, KPMG UK’s chief economist, said: “While the economy showed resilience at the start of the year, the second half looks more uncertain.

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