Rachel Reeves has hinted at the possibility of tax increases in the upcoming Budget. The Chancellor did not reiterate her previous assurance that there would be no further tax hikes, citing the need to address financial challenges. She acknowledged the changing global landscape, influenced by various factors like conflicts, trade barriers, and borrowing costs.
Despite speculation about a potential VAT raise, Reeves emphasized her commitment to not raising essential taxes for working individuals. She reaffirmed the Labour Party’s manifesto promise not to increase VAT, National Insurance, or income tax for the working class. When questioned about VAT specifically, she reiterated the manifesto’s stance, citing the need to alleviate economic burdens on working people.
Reeves declined to rule out a VAT increase directly, stating that detailed decisions would be made closer to the Budget announcement. Additionally, she addressed concerns about the two-child benefit limit and emphasized her dedication to combating child poverty through various initiatives like free school meals and wage increases.
The Chancellor emphasized the importance of balancing financial demands while prioritizing measures to reduce child poverty. She assured the public of her commitment to responsible fiscal management.
