Labour budget cuts and tax rises – trick or treat?
Labour Chancellor Rachel Reeves is expected to lay the groundwork today for cuts to public spending, some delays to infrastructure projects and, of most interest to the media, tax rises.
Reeves is set to reveal a £19 billion budget as part of an audit by Treasury civil servants to help restabilise the economy.
A Treasury source said the announcement would not be “a return to austerity” but instead focus on repairing the damage of “14 years of unfunded promises” from the Tory government, which had left a £20bn hole spending for essential public services.
Ahead of the election, Labour’s manifesto committed to not raising taxes for working people, instead relying on economic growth to improve government funds. It has ruled out increases in income tax, VAT, national insurance and corporation tax, leaving changes to capital gains tax, inheritance tax and pensions relief as possibilities.
Right-wing media ran headlines about Labour pushing tax increases – while left-wing media focused on how the announcement will reveal a more robust outline for Labour’s spending decisions, after inheriting and revising the Conservative budget distribution.
Unless otherwise linked, headlines are front pages for 29/07/2024.
Rachel Reeves paves way for cuts and tax rises to fill shortfall left by Tories
Labour isn’t being forced to increase taxes. It’s choosing to
followed by further op-ed that:
Reeves has subscribed to abacus economics of the very worst kind –
The Chancellor is about to use the Treasury-funded OBR as a cover to justify tax rises
Rachel Reeves to accuse Tories of ‘covering up’ true state of public finances
Is Rachel Reeves about to make the same mistake as Liz Truss?
Labour’s tax trick: Rachel Reeves will unveil doomsday claim about £20bn hole in public finances TODAY as she slashes road projects and paves the way to hike the burden on Brits – but will still sign off huge pay rises demanded by unions
Rachel Reeves ready to deliver the bad news: Britain is broke
