Labour’s finance chief, Rachel Reeves, is facing backlash for potentially backtracking on pre-election pledges. The UK’s Labour government, under Chancellor of the Exchequer Reeves, is considering tax increases in the upcoming budget. Former Conservative Chancellor Jeremy Hunt condemned this move as a historic betrayal.
Despite winning the general election, Reeves highlighted the £22 billion financial shortfall inherited from the previous Tory rule. While she maintains a commitment to untouched VAT, National Insurance, and income tax, Reeves acknowledged the likelihood of tax hikes in the forthcoming budget.
In a podcast interview, Reeves affirmed her adherence to the manifesto promises, emphasizing pay rises for public sector workers after a decade of stagnant wages. The ongoing dispute over financial responsibility escalated as Hunt accused Reeves of evading tough decisions and planning tax increases.
Following the cancellation of infrastructure projects to curb overspending, the confrontation between Reeves and Hunt continues. Stay tuned for updates on this fiscally charged scenario!
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