Rachel Reeves warns EVERYONE faces tax hikes as she paves way for manifesto-breaking Budget: Chancellor tells millions ‘you all have to contribute’, as she blames Brexit and need to ‘invest’ in NHS
Ms Reeves has been hiding from the media since the Daily Mail revealed last week that she had broken the law by failing to obtain a license to rent her family’s home.
Despite the economy’s dire state, Ms Reeves will rule out spending restrictions, arguing more ‘investment’ is needed to stimulate the economy and support public services.
Ms Reeves is considering a proposal by the Left-Wing Resolution Foundation to increase income tax by 2p; This will be the first increase in the basic tax rate for 50 years.
The move could be partly offset by a 2 per cent cut to National Insurance but would still raise an extra £6bn a year from pensioners and others.
He also wants to drag millions into higher tax bands by extending the six-year freeze on tax thresholds, despite previously warning that the move would break Labor’s manifesto promise.
Photograph of the Labor Party publishing its general election manifesto in June 2024
After raising a record £40bn in taxes in last year’s budget, Ms Reeves said she had ‘swept everything away’.
Following a backlash from the business community, he told the CBI last November: ‘I’m really clear. ‘I’m not coming back with more debt or more taxes.’
However, low growth and high public borrowing costs triggered a deterioration in public finances.
