Rachel Reeves is set to issue a fresh tax warning this morning, amid growing speculation she is preparing to tear up Labour’s manifesto by hiking income tax.
In a highly unusual move, the Chancellor will use an early morning speech in Downing Street to address ‘speculation’ about the contents of her November 26 Budget – when she is expected to raise taxes by up to £30billion.
She is expected to warn that the public finances are in a worse state than previously admitted.
Despite the parlous state of the economy, Ms Reeves will rule out spending restraint, arguing that further ‘investment’ is needed to boost the economy and prop up public services.
ANDREW PIERCE: Rachel Reeves vowed SEVEN times not to raise taxes
The Chancellor told Britain after her last Budget, which raised our taxes to an all-time high, that she wasn’t coming back for more.
Rachel Reeves is a liar, she’s incompetent and in my view, she won’t last and it’s time for her to go.
Reeves blames the Tory’s for the issues facing society today
Kicking off her speech Reeves has blamed the Conservatives for the state of the economy.
She blamed ‘Liz Truss’ disastrous mini budget’ and the ‘£22billion black hole left by the previous government’ as key reasons for the problems facing Labour.
At the Budget last year, I fixed the foundations, dealing with the aftermath of Liz Truss’s disastrous mini-budget and the £22 billion black hole in the public finances left by the previous government.
I put our public finances back on a firm footing, provided an urgent cash injection into our faltering public services and began rebuilding our economy.
Rachel Reeves announces her priorities
What is the Chancellor considering?
Rachel Reeves is looking at more than a hundred tax and spending measures as she desperately tries to balance the books at the Budget.
The Chancellor is considering a blizzard of measures targeting the ‘wealthy’ as she scrambles to drum up huge sums.
Treasury officials are said to have been ordered to find ways of getting more money out of everyone with incomes of more than £45,000 a year.
Insiders claim that only Brits below that threshold – the bottom two-thirds of earners – are being defined as ‘working people’ to receive protection from Labour’s tax assault.
That effectively brands the top third of earners as ‘wealthy’ – encompassing jobs such as HGV drivers, teachers and head chefs at the Wagamama restaurant chain.
Labour’s favourite thinktank argues they must break income tax pledge
Rachel Reeves must put up taxes by £26billion and break her pledge not to put up income taxes, Labour’s favourite think-tank has warned.
The Resolution Foundation said the scale of the hikes needed meant the Chancellor should ignore the election promise.
It suggested that, even though the financial black hole facing Ms Reeves may be ‘less daunting’ than some fear, she should break the pledge in order to fund the scrapping of the two-child benefit cap as well as Ed Miliband’s net zero plans.
But speculation that the pledge will be abandoned has been growing especially after the PM refused to say recently whether he stood by it.
What did Labour promise on tax?
In the 2024 election manifesto, the party pledged:
We will ensure taxes on working people are kept as low as possible.
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.
However with a suspected £50billion black hole to be filled, it is expected that Reeves will u-turn on this promise.
Good morning!
Welcome to the Daily Mail’s live blog on the Chancellor’s pre-budget speech.
Rachel Reeves is set to issue a fresh tax warning this morning, amid growing speculation she is preparing to tear up Labour ‘s manifesto by hiking income tax.
The Chancellor will speak outside of Downing Street today at 8:10am to address ‘speculation’ about the contents of her November 26 Budget – when she is expected to raise taxes by up to £30billion.
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Rachel Reeves to give major speech amid growing speculation she is preparing to hike income tax: Live updates
