POLL: Should Rachel Reeves be sacked if she breaks Labour manifesto tax pledges? | Politics | News
Rachel Reeves has laid the groundwork for major tax rises in her upcoming Budget. Amid intense speculation about tax rises, the Chancellor took the unusual step of speaking three weeks before his announcement on 26 November.
During his speech in Downing Street he refused to recommit to Labour’s manifesto pledge not to increase income tax, national insurance or VAT. Ms Reeves, who said she would not be coming back for more after last year’s tax hike budget, warned of “hard choices” and said “we all need to contribute”.
Ms Reeves blames global problems like tariff war triggered by US President Donald Trump and domestic problems, including the budget watchdog’s expected decline in economic efficiency.
Economists predict the Chancellor will need to find billions to plug the black hole caused by U-turns on welfare spending cuts and rising debt interest costs.
It also wants to provide a bigger buffer than the nearly £10bn it previously had in 2029-30, against the rule of balancing day-to-day spending with tax revenue.
Ms Reeves has repeatedly refused to confirm Labor will stick to its manifesto commitments, saying: “We have to do the right things. The problem of the last 14 years is that political interests have always trumped the national interest and that’s why we’re in the mess we’re in today.”
He emphasized that he was appointed prime minister “not always to do what is popular, but to do what is right.” He added that this would mean focusing on “shortening NHS waiting lists, reducing the national debt and lowering the cost of living”.
