Rachel Reeves has affirmed her commitment to not stepping down if she implements tax increases in the upcoming Autumn Budget. Earlier today, the Chancellor declined to uphold Labour’s pre-election pledge of no rises in income tax, VAT, or national insurance. Acknowledging the need to make tough choices in the November 26 Budget, she emphasized the importance of prioritizing reductions in NHS waiting lists, lowering the cost of living, and addressing national debt.
During an interview with LBC’s Andrew Marr, Ms. Reeves was questioned about the possibility of resigning if she raises income tax. Marr suggested that she could potentially announce her resignation at the Budget, citing challenging economic conditions. In response, Ms. Reeves highlighted her track record of managing the economy effectively amid global uncertainties and emphasized her commitment to steering the economy in the right direction.
Addressing concerns about potential backlash for deviating from Labour’s manifesto promises, Ms. Reeves emphasized the importance of transparency and honesty in decision-making. She expressed her determination to avoid manipulating figures or delaying crucial projects, emphasizing her commitment to fiscal responsibility.
In a rare pre-Budget speech from Downing Street, Ms. Reeves hinted at possible tax hikes, stating that everyone must contribute to addressing the economic challenges at hand. She criticized the austerity measures implemented by the Tories and highlighted the negative impact of the rushed Brexit deal on businesses.
Ms. Reeves reiterated her duty to inform the public about the consequences of past policy choices and emphasized her role as Chancellor in making decisions based on what is right rather than what is popular. She assured that the upcoming Budget would not mirror the significant tax increases of the previous year, clarifying that those measures were necessary to address the financial shortfall inherited from the previous government.