Rachel Reeves, Chancellor of the Exchequer, has reopened the possibility of additional tax rises, despite previous assurances. The news comes as productivity measures show a worse-than-expected decline, potentially creating a multi-billion pound deficit.
Rachel Reeves opened the door to a new wave of tax rises yesterday – just a week after ruling them out.
‘I’m really clear I’m not coming back with more borrowing or more taxes,’ she told the Confederation of British Industry . Shadow Chancellor Mel Stride, pictured, asked her whether Downing Street had ‘changed its mind’, or if she ‘spoke without thinking’ when she told business chiefs she would not repeat her Budget hikesReeves hit by slump in productivity
If the forecast is revised down it will narrow Rachel Reeves’ ‘headroom’ to balance the books and create a black hole worth tens of billions of pounds. Ms Reeves said she had been left to deal with a £22billion ‘black hole’, adding: ‘So we did have to raise taxes to fund our public services, but never again will we have to repeat a Budget like that, because we have now wiped the slate clean and drawn a line under the mess created by the last government.’
He added: ‘She told the CBI last week there would be no more borrowing and no more taxes. Days later the business secretary and then the Prime Minister refused to stand by what she said. Now even she cannot repeat her own words.’
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