RACHEL Reeves hinted that she will have to hike taxes in the Budget as she admitted “tough choices lie ahead”.
The Chancellor is trying to pug a massive £30billion blackhole in the nation’s finances as the economy continues to struggle.
Chancellor of the Exchequer Rachel Reeves hinted that Brits may have hefty tax hikes on the way[/caption]
In an interview ahead of the Labour Party conference, she ruled out breaking her manifesto tax lock commitment – ruling out raising income tax, National Insurance Contributions from workers and VAT.
And Ms Reeves ruled out going on a borrowing binge – insisting her fiscal rules are ironclad.
Her word means taxes will almost certainly be raised in the Budget on November 26.
Speaking to the Times, Ms Reeves was asked if the Budget will be “tough”.
She replied: “No one is saying anything else.
“I think anyone who opens a newspaper, watches the telly in the evening, goes on special media, can see that the world is in a very uncertain place.”
Britain’s economy is struggling – clobbered by creeping inflation, stinging tariffs and last year’s tax hikes on business.
Lefties in Labour have urged Ms Reeves to tear up her fiscal rules and go on a borrowing binge instead.
Andy Burnham – Labour Mayor of Manchester and so-called King of the North – has become the poster boy for these calls.
Mr Burnham – a possible leadership challenger to Keir Starmer – has made a series of interventions attacking the Chancellor’s policies.
Earlier this week, he said the Treasury needs to stop being so “in hock” to the bond markets.
Hitting back at Mr Burnham, the Chancellor compared his proposals with Liz Truss’ disastrous mini Budget.
She said: “We don’t have the luxury of ignoring the bond markets. It’s not like ancient history.
“It was three years ago that Kwasi Kwarteng delivered his mini Budget.
“The government then took a huge gamble on the British economy.
“And as a result, interest rates went through the roof, mortgage rates went through the roof, pensions were put in peril.”
It comes as Reeves urged the PM to sign up to an “ambitious” deal to let young people from the EU live and work in Britain.
The Chancellor hopes a youth mobility scheme will bring in some economic growth.
But her words are likely to spark a fresh row over immigration and the unpicking of Brexit.
Earlier this week, new stats revealed a staggering 750,000 migrants moved to the UK in the year ending June 2024.
This is the equivalent of a city around the size of Leeds being added to the population.
Ms Reeves said she wants the the Office for Budget Responsibility (OBR), the official forecaster, to “score” the EU reset when it rates the economy this autumn.
