Rachel Reeves suggests family benefit limits will be lifted


Elsewhere in her interview, she all but confirmed the government plans to break Labour’s manifesto pledge at last year’s general election not to raise income tax rates, VAT or National Insurance.

“It would of course be possible to stick with the manifesto commitments. But that would require things like deep cuts in capital spending,” she added.

“What I can promise now is I will always do what I think is right for our country. Not the politically easy choice, but the things that I think are necessary to put our country on the right path,” she added.

Labour’s 2024 election manifesto pledged not to raise the basic, higher, or additional rates of income tax, or National Insurance – prompting a row last autumn when Reeves announced a hike in the contributions paid by employers.

It also promised not to raise Value Added Tax (VAT), a sales tax, although the manifesto did not specify whether this applied to the rates, or which products are subject to the charge.

The chancellor has not ruled out continuing to freeze income tax thresholds beyond the 2028 date fixed by the last government, allowing more people to be dragged into higher bands as their wages rise over time.

Pressed on whether she could have avoided tax hikes through lower public spending, she said she was “not going to apologise” for increased funding for the NHS, adding that reducing waiting lists was one of her three Budget priorities.

She also claimed that some of the spending she unveiled at June’s spending review had been pencilled in, but not properly funded, by the Tories.


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