Labour’s new deputy leader warns Rachel Reeves not to break manifesto pledge and raise taxes
Labor’s new deputy leader, Lucy Powell, has warned Rachel Reeves not to break her manifesto promises and raise taxes and said voters should be able to “trust” the government.
After both the chancellor and the prime minister refused to repeat their pledge not to increase income tax, national insurance or VAT, Ms Powell said there was “no doubt” the party must keep its promises.
He also said it was urgent for the government to completely remove the two-child benefit cap in this month’s Budget.
The warning comes after Ms Reeves warned the country of sweeping manifesto-busting tax increases coming later this month, saying “we all need to contribute” in an unprecedented pre-Budget speech on Tuesday.
Economists have repeatedly warned Ms Reeves that the combination of high debt, slow economic growth and Labor U-turns mean she must raise taxes or scrap flagship borrowing rules in the Budget.
Ms Powell told BBC Radio 5 Live: “Of course we have to follow our manifesto. There’s no doubt about that.”
As for the manifesto promises, he said, “trust in politics is an important part of this because if we are going to take the country with us, they need to trust us, and that’s really important.”
He also called for the “urgent” removal of the two-child benefit limit.
“I think what we’ve all been talking about lately is the urgency of this,” he said, “because every year that passes with this policy in place, 40,000 more children are pushed deeper into poverty as a result – and that’s why it’s urgent that we repeal this policy and repeal it completely.”
Tony Blair’s think tank has warned Ms Reeves that she must cut taxes again before the next election if she breaks her key manifesto promise and increases the budget.
The group also said any tax increases, such as increasing VAT or income tax, should be accompanied by pro-business policies to break Britain’s “tax and spend cycle of disaster”.
