UK Treasury chief admits business tax rise could lead to lower than anticipated wages

U.K. Treasury chief Rachel Reeves has conceded that wages may rise by less than previously thought as a direct result of her budget decision to increase a tax that businesses pay for their employees. On Wednesday, Reeves raised taxes by around 40 billion pounds ($52 billion) to plug a hole she claims to have identified in the public finances and fund cash-starved public services. The biggest single measure — worth some 25 billion pounds in five years — was an increase in a tax employers pay in addition to the salaries of their workers. Reeves said Thursday that she recognized "there will be consequences.”