The Prime Minister warns of looming tax hikes as the nation’s finances tighten, while a controversial plan to place Thames Water into special administration—costing billions—has been paused due to legal and financial risks. Though he vows no increases to income tax, VAT, or national insurance, he admits tough choices may be needed to fund vital services like housing and social care. Downing Street still sees public ownership of water as the ideal, but admits the path forward is complex. A snap election? Absolutely not—his focus remains on cost-of-living relief through smarter spending, not political upheaval.
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