tax rises look even more likely after rachel reeves refuses to rule them out

Reeves instead insisted that the country faces ‘big challenges’ which she will not ‘sweep these under the carpet’ like previous governments.

Labour 2024 manifesto said: ‘Labour will not increase taxes on working people,which is why we will not increase National Insurance,the basic,higher,or additional rates of Income Tax,or VAT.’

In Reeves’ speech,which was announced only last night,she said she will make ‘the choices necessary to deliver strong foundations for the economy’.

Much of Reeves’ address repeatedly focused on the ‘hammer blows’ dealt by the previous Conservative government,including austerity and Brexit,

‘All this meant that when the pandemic arrived,the country was unprepared,’ she said.

The UK remains a nation of delayed trains and potholes,Reeves said,but this is because Tory governments prioritised ‘political convenience’.

The Chancellor of the Exchequer is widely expected to hike taxes up (Picture: AFP)

Fragile supply chains,stubborn inflation,a large national debt and global uncertainty remain major concerns for the government’s spending,however.

Inflation,which means a pound coin today doesn’t go as far as it did yesterday,is at 3.8%.

While from the year up to July,the debt swelled from £2.53trillion to £2.71trillion.

Reeves added,‘but I know that progress takes time,’ stressing that her budget will focus on easing the cost-of-living crisis and slashing debt.

‘Those that continue to push for easy answers are irresponsible now,’ she added.

The Autumn Budget will set out the government’s plans for tax rises and spending cuts.

@alrightgov Rachel Reeves did something that’s very unusual for a Chancellor – this is why #ukpolitics #rachelreeves #labour #budget2025 #keirstarmer

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Analysts widely expect Reeves will hike taxes to avoid massive spending cuts.

Josh Wheeler,founder of the London PR firm Be Broadcast,told Metro that Reeves’ unexpected speech amounted to a ‘Notes App apology’.

‘Instead of clarity,there was caution. Instead of leadership,justification,’ Wheeler said.

‘The core line – “it’s the last government’s fault” – might work internally,but to the public it sounds tired. It signals deflection,not direction.’

Financial expert and podcaster Vix Leyton said that even even a small-sounding tax increase can be deeply felt by families.

The options on the table may sound modest – a 1p rise in the basic rate of income tax,or an increase in employer National Insurance contributions,but even that would cost the average worker about £300 a year,’ she told Metro.

‘For families already counting every pound,it’s an additional hit they can’t absorb.’

Instead of rising taxes,Reeves should streamline them,suggested Arjun Kumar, a qualified tax expert and Founder of the accountancy platform Taxd .

‘By simplifying the tax system,focusing on closing loopholes,and recouping tax that would have been lost through tax avoidance or evasion,she could generate substantial treasury revenue while keeping her manifesto promises intact,and without leaving Brits worse off,’ she told Metro.