Rachel Reeves issued damning verdict by voters ahead of the Budget | Politics | News
Voters gave Rachel Reeves a harsh assessment in a new poll released less than a month before her second budget this November. Respected pollster YouGov surveyed voters to find out how pessimistic they were about whether Rachel Reeves would raise income taxes this year, and the findings were stunning.
Just 2 per cent of voters believe Ms Reeves will “definitely” not raise the basic income tax rate next month, despite a firm manifesto pledge she made less than two years ago. Another 8 percent said they believed Ms. Reeves would “probably not” raise income taxes; That means only 10 percent of voters believe he won’t. In stark contrast, 64 per cent of Britons said they believed Ms Reeves would probably or definitely raise income tax, including 58 per cent of Labour’s 2024 voters.
Last week Cabinet Ministers began warning Ms Reeves against rumors that her manifesto commitments had been broken after reports emerged that she and the Treasury were exploring the possibility.
The Treasury is reportedly in active discussions about adding 1p to the basic income tax rate; this will amount to around £8bn and cost workers up to £377 a year.
Ms Reeves is said to be eyeing the dramatic move as she tries to find nearly £30 billion in tax increases to plug her latest financial black hole.
While Labour’s election manifesto provided a firm guarantee not to increase income tax, national insurance or VAT, a Treasury source said: “There is a very lively debate among budget planners at the moment about how bold we want to be.”
Sir Keir’s spokesman refused to rule out the move, insisting the government would not comment on tax-related speculation ahead of the Budget.
They added: “The budget choice is clear: we can return to the cycle of austerity, debt and decline, or we can continue to invest in renewing Britain with an economy that works for working people.
“We will always choose the latter and, as always, it is for the Chancellor to set his budget in parliament next month.”
A minister insisted Labor “stand behind our manifesto” but did not guarantee the commitment would be delivered in the Budget.
But the news was criticized by Cabinet ministers, with some expressing fears that breaching manifesto commitments would be viewed negatively by voters at a time when Labour’s support was already falling.
A minister has warned that there must be a “very, very high threshold” for reneging on the promise.
Ms Reeves was criticized for allocating just £10bn for herself in the last budget for so-called fiscal headroom; this was a buffer to absorb economic shocks while ensuring that the country’s financial situation was still recovering.
The Chancellor is believed to be determined to give himself much more space in the November Budget, but this will require further tax rises or spending cuts.
A Treasury source told the Guardian: “Nobody wants it to be £10bn again but there is an argument for us to go much higher which would mean we don’t need to go back and do it again and we could have enough room to cut taxes before the budget.
“But if we continue down this path, we’re more likely to have to raise income taxes; that’s the debate that’s going on right now.”
