Rachel Reeves hinted at the possibility of tax increases in the upcoming Budget. The Chancellor did not reaffirm her previous commitment to refrain from imposing additional taxes, citing the need to address economic challenges. Reeves acknowledged the evolving global landscape, including conflicts in Europe and the Middle East, trade barriers, and borrowing costs affecting the economy.
Despite speculation about a potential VAT hike, Reeves emphasized her determination to avoid raising essential taxes for working individuals. She reiterated 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 her commitment to easing the financial burden on working people and standing by the manifesto pledges.
Reeves declined to definitively rule out a VAT increase, explaining her reluctance to dissect the manifesto details before the Budget announcement. She was also questioned about the controversial two-child benefit limit, expressing her deep concern for child poverty and highlighting past initiatives supporting children’s well-being.
Reeves affirmed her dedication to reducing child poverty while ensuring fiscal responsibility. Her remarks underscored the importance of balancing social welfare objectives with financial sustainability.