Raise taxes or this government will fail, Rachel Reeves’s former top adviser warns
One of the former superiors of the Chancellor warned, Rachel Reeves should be able to abandon the government of Sir Keir Starmer to avoid raising taxes for working people.
Jim O’Neill, a former Goldman Sachs Chief, translated the Treasury Minister, who left the conservatives and later advised Mrs. Reeves, he said there was no choice but to abandon the key parts of his economic policy, including the commitment to increase national insurance contributions for income tax, employees or VAT.
Questioning if this promise is now sustainable, Independent: “North Powerhouse Ray, small modular nuclear reactors and investment and growth differences cannot undertake a variety of other things that will create a difference of investment and growth.”
As the ministers have to leave the locks of welfare reforms to stop a rebellion by the deputies, the disaster comes for the government of Sir Keir’s government and leaves 5 billion pounds of black holes in their spending plans.
Within a week defined by MS Reeves, he explicitly shed out with questions about the future of his tears in PMQs, the government’s pressure to balancing books and significantly changing the strategy has increased, and confessed that chancellor U -turn came to “cost”.
However, when the labor falls in a magnificent manner in the surveys and the Prime Minister faced the increasing unrest from the back stalls – he talked about the duties of the government, while the economy continued to become stagnant.
Lord O’Neill claimed that some of the problem was caught in a short term about the government’s leader Nigel Farage and reform.
“They need to stop worrying about Farage, four years ago, which should be important,” he said.
Reflecting the problems related to the Welfare Reform Law, he continued as follows: “The last few days should force the government to really prioritize, to bind the priorities specific to growth missions, to leave social media 24/7 and significantly accept that three of the financial rules, growth mission and manifesto tax commitments.
“I personally leave the triple lock on pensions and the current welfare invoice and said that they would continue the more serious welfare reform.”
The best interviewer Luke Tryl, the UK director, who is more common, Independent The government would now be better than pushing big tax hikes to correct public services before the next election.
“At this stage, the government would be better than to make a wide -based tax increase and make sure that the UK can make them feel better than to feel that England is completely broken.
“It will not suffer to celebrate themselves to break the word, but the alternative – four years when the people have not changed – politically and much worse for the mood of the country.”
On Friday, Mrs. Reeves refused to exclude tax increases after what he admitted to the “damaging” climb to the welfare cuts. It is said that the chancellor warned this autumn that any tax increase was more painful than they had followed last October, and all low -hanging fruit options were received.
He asked he was asked that he could exclude tax hikes, he said Guardian: “I am not, because a chancellor would be irresponsible to do this.” However, it is believed that the government is opposed to increasing calls from workers’ deputies to fill the hole in public finances.
In the meantime, Britain’s leading economic thoughts, tax increases, retirement funds can be dominant and the money by putting their money in pensions to prevent the taxation of new rules to prevent the balance of warning.
Paul Johnson, Director of the Institute of Financial Research, said: “If we look at £ 30 billion – which makes sense – you can’t see a way to raise this kind of money without hitting this kind of money.
“If you are looking for big money, there must be something in income tax national insurance or VAT.”
Caswell, the senior economist of the National Institute of Economic and Social Research, said: “Apparently, expenditure examination and allocation of funds (and weak GDP growth and public finance) seem almost inevitable to increase taxes in autumn.”
Tax Specialist Arj Kumar warned the founder of Taxd by tax consultants TAXD: “The next budget will probably see that Rachel Reeves dig more deeper and increased the state’s defense expenditures and infrastructure more.
The warnings come because the Prime Minister strongly implies that the government will bring tax increases in the next budget.
In an interview with the BBC Nick Robinson, the presenter Sir Keir said: ım I will not remove your taxes, ”he added:“ Then the taxes rose. ”
The Prime Minister returned: “Nick, fair, there was a manifesto commitment for people who would not increase the income tax, national insurance and VAT for working people. This was a manifesto commitment. The last time I told you and this is what we kept.
“So the only thing we have not done in the last budget, we have not violated this manifesto commitment. We will not violate this manifesto commitment.”
Critics, the reaction of only three – income tax, VAT and tax increases on national insurance closed the door, he said.
Already, a note leaked from Deputy Prime Minister Angela Rayner to Mrs. Reeves, the party’s left of the left of the super -rich and large companies said that it has put pressure on so -called taxes.
Ms. Rayner summarized eight new reserve taxes instead of further cutting public services.
