UK taxes could rise further if Labour’s growth agenda fails: analysts [Video]

LONDON — Doubts are mounting over the Labour government’s flagship growth and investment agenda, with one analyst warning further tax rises could be coming as soon as next year.

U.K. Finance Minister Rachel Reeves last week announced a series of reforms, including financial services deregulation and measures to boost pension investments — the latest in a slew of changes aimed at getting the country’s economy growing again.

A higher economic growth rate could theoretically boost the government’s tax take without the need to raise taxes further, because overall revenues would be higher. Labour has a fine balance to strike, however, in keeping taxes high enough to fund the country’s depleted public services, while leaving businesses with enough cash to invest and grow.

“The Chancellor is walking a real tightrope with this one,” James Smith, economist at ING, told CNBC’s “Squawk Box Europe” on Friday.

“These …