A Treasury minister has declined to rule out potential tax increases at the upcoming budget in the autumn, citing concerns about the possibility of global economic instability impacting the government’s ability to fund its spending plans.
During an interview with Sky’s Politics Hub With Ali Fortescue, Emma Reynolds defended the government’s economic management but refrained from confirming whether there may be a need for additional tax revenue.
When asked multiple times if tax rises were being ruled out, the minister stated, «I’m not ruling it in and I’m not ruling it out.»
«We currently have £9bn of fiscal headroom [remaining in the budget], which is significantly more than what the Tories had at the end of their time in power,» she added.
«We have a growing economy, and as the chancellor mentioned in the [Commons] chamber, last year’s autumn budget was a once-in-a-generation budget where difficult decisions had to be made, and we do not anticipate having another budget of that nature in the future.»
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In response to the minister’s comments, shadow chancellor Sir Mel Stride told Sky News, «The mask has slipped.» Today’s spending review was simply a way to obscure the upcoming tax increases. The chancellor, Rachel Reeves, avoided directly addressing the issue, stating that any tax changes necessary to fund spending had already been made last year. Labour claims that Reeves has implemented strict fiscal rules to control government borrowing and reduce national debt. However, experts warn that she has limited flexibility within these rules, leaving little room to maneuver. If economic forecasts turn negative, tax hikes may be inevitable to meet these strict guidelines. «We have had some negative news over the last few months,» the Treasury minister said.
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