Labour prepares for tax hike to cover £22bn Tory deficit

Labour Anticipates Tax Increase to Fill £22bn Tory “Hole” in UK Public Finances

UK Labour chancellor Rachel Reeves revealed that PM Keir Starmer’s government may need to raise taxes in October’s Budget to fill the £22bn gap left by the previous Tory administration.

Despite promising no tax rises on working people during the election campaign, Labour is considering tax increases to address the financial shortfall. Chancellor Reeves hinted at VAT increases on private school fees to fund education initiatives.

While Labour aims to adhere to responsible fiscal policies, including no VAT, national insurance, or income tax hikes, other forms of taxation like inheritance tax and capital gains tax are not ruled out.

The public purse debate between Labour and the Conservatives continues, with Labour emphasizing the need for tough decisions to stabilize government finances.