Chancellor Rachel Reeves rules out raising rates of income tax, National Insurance, or VAT
TAXING TIMES Chancellor Rachel Reeves rules out raising rates of income tax, National Insurance, or VAT
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RACHEL Reeves has ruled out raising rates of income tax, National Insurance, or VAT.
Economists warned the Chancellor might have to break Labour's manifesto pledge not to raise any of those taxes.
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Experts say she may need up to £30billion more in revenue to cover sluggish growth and Labour U-turns.
On Tuesday, she told Cabinet ministers that rebels' reversal of planned benefit reforms meant taxes would have to rise.
But Treasury sources insisted they were sticking to the 2024 manifesto's pledge on key taxes.
It comes after a tough week for the Cabinet minister, who was seen crying in the Commons at PMQs on Wednesday.
READ MORE ON RACHEL REEVES
TAKING US FOR FUELS Brits face MORE pumps misery as fears mount Reeves will hike fuel duty
She later said her tears had been caused by a 'personal issue'.
Yesterday The Sun reported that drivers already hammered by soaring motoring taxes could face fresh pain at the pump with a fuel duty hike.
Reeves was understood to be 'considering everything' at the next Budget after her welfare U-turn — prompting fears for motorists.
Top Tory Dame Priti Patel said a hike would mean a 'betrayal of working people'.
The AA said motorists are already being squeezed, with Vehicle Excise Duty rising by £30 since 2022, plus millions more paid in parking charges, tolls and congestion fees.
AA boss Edmund King also warned any rise at the pumps 'could be catastrophic' for the UK economy.
He added: 'The added danger is increased duty simply fuels higher inflation. The strong message to the Chancellor is 'keep it down'.'
Rachel Reeves FINALLY addresses Commons tears after she and Keir Starmer put on awkward show of unity
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