Rachel Reeves has suggested that there may be a possibility of tax increases in the upcoming Budget. The Chancellor refrained from reiterating her previous assurance that she would not seek additional tax revenue, citing the challenge of fiscal balance. This development coincides with Ms. Reeves’ efforts to navigate the financial demands in the upcoming November Budget.
In response to inquiries about potential VAT hikes, she emphasized her commitment to avoiding raising essential taxes for working individuals. She maintained that the Labour manifesto’s stance on not increasing VAT, National Insurance, and income tax for the working class remains firm.
When pressed about a potential VAT increase, she reiterated the manifesto’s position, emphasizing the need to alleviate the economic burdens on working people. She underlined the manifesto commitments and their importance in supporting the financial well-being of the working population.
Ms. Reeves declined to definitively rule out a VAT increase, stating that she preferred not to dissect the manifesto line by line before the Budget, citing the continuous cycle of questions that follow each response.
Furthermore, she addressed concerns about the controversial two-child benefit limit, indicating that the decision regarding its future lies within the Budget’s domain. Ms. Reeves emphasized her dedication to combatting child poverty through various initiatives such as free school meals, breakfast clubs, and wage increases, highlighting her commitment to improving the well-being of children.
She assured that efforts to reduce child poverty would be balanced with fiscal responsibility to ensure accountability and trust in her approach to managing financial resources.