Britain facing cuts after Reeves rules out tax raid
Reeves doubles down on pledge not to raise taxes as Britain faces cuts
- Chancellor Rachel Reeves insists Labour's spending plans are fully funded without raising income tax, VAT, or national insurance, despite warnings of potential cuts to public services.
- The Resolution Foundation and the NIESR suggest that increased spending on health and defence will necessitate cuts to other public services if tax rises are avoided.
- Internal government sources indicate a 'civil war' within the cabinet, with some Labour figures warning Reeves will have to abandon manifesto pledges on spending.
- The IFS director Paul Johnson has warned that tax rises will be needed to meet Labour’s spending commitments.
- Reeves maintains that manifesto commitments are fully costed and funded through measures like VAT on private school fees and cracking down on non-doms, despite pressure to consider wealth taxes.