Rachel Reeves hints at lifting two-child benefit cap at Budget
Why Rachel Reeves might lift controversial two-child benefit cap
- Rachel Reeves, the Chancellor, has hinted that the government may deviate from its manifesto promises on tax in the upcoming Budget.
- She stated that adhering strictly to election pledges would require "deep cuts" in other spending areas, particularly in capital investment.
- Speculation is rife that an income tax increase could be announced, despite Labour's manifesto commitment not to raise income tax, VAT or National Insurance.
- Ms Reeves also indicated openness to ending the two-child benefit cap, emphasising that children should not be penalised and child poverty must be tackled.
- The Chancellor justified potential policy changes by citing a significantly worse economic situation inherited than anticipated when the manifesto was created.