Chancellor Rachel Reeves refused to rule out tax rises as she says she will make the “necessary choices” in this month’s upcoming Budget.
Reeves laid out a sweeping reform agenda – dubbed the “Leeds Reforms” – aimed at revitalising the UK’s financial services sector and restoring growth. She argued that excessive regulation has become “a boot on the neck” of business, stifling innovation and risk-taking.
It has also been reported that the Chancellor has “no regrets” over potential breaches of Labour’s manifesto pledge not to raise certain taxes in the upcoming Budget. It comes as the pound has fallen to a six-month low after Reeves refused to rule out hiking taxes to plug a hole in the public finances in the pre-Budget address this morning.
In her address Reeves said: “Later this month, I will deliver my second Budget as Chancellor of the Exchequer and I will make the choices necessary to deliver strong foundations for our economy.
“There is a lot of speculation about the choices that I will make. I understand that these are the important choices that will shape the future of our country for years to come and I want people to understand the circumstances we are facing, the principles guiding my choices and why I believe they will be the right choices for our country.
“At the Budget last year, I put the public finances back on a firm footing, provided an urgent cash injection into our faltering public services and began rebuilding our economy. But since that Budget, the world has thrown even more challenges our way. The continual threat of tariffs has dragged on global confidence, deterring business investment and dampening growth.
“When I was appointed Chancellor, people put their faith in me to take our country forward… not to be swayed by political convenience, not to always do what is popular, but to do what is right.
“At the Budget, I will continue to deliver on the priorities of the British people. Mine will be a Budget for growth with fairness at its heart and a Budget that supports businesses – to create jobs and to innovate.”
In response, Conversative Party Leader, Kemi Badenoch, criticised ]Reeves’ speech, dubbing it “one long waffle bomb”.
“This morning we saw the extraordinary spectacle of a chancellor just days before a Budget, rushed into a panicked speech,” she said. “We were told that this was the great moment that Labour would show they had the plan for growth. Instead what we got was a masterclass in managed decline.”
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