Kemi Badenoch Challenges Rachel Reeves Ahead of Budget
Conservative leader Kemi Badenoch has urged Prime Minister Rishi Sunak to dismiss Chancellor Rachel Reeves if she attempts to increase taxes in the forthcoming Budget scheduled for next month. This call to action comes in light of Labour’s past commitments during their election manifesto.
Labour’s Pledge Not to Raise Taxes
In their election manifesto last year, Labour vowed not to increase taxes on “working people,” which included National Insurance, income tax rates, and VAT. However, during Prime Minister’s Questions, Labour leader Sir Keir Starmer refrained from reaffirming this commitment, raising concerns about potential tax hikes.
Speculations Surrounding the Upcoming Budget
The Chancellor is widely anticipated to propose tax increases in her Budget on November 26, especially given recent economic forecasts and several reversals on welfare cuts. These factors have complicated her ability to adhere to her own tax and spending guidelines, leading to fears of further financial burdens on citizens.
Accusations of Broken Promises
The Conservative Party has accused Labour of breaching its manifesto by unveiling £40 billion in tax increases in last year’s Budget, which included an increase in the National Insurance rate for employers. Badenoch criticized Reeves for contradicting her previous statements about avoiding further borrowing or tax increases.
Conservative Proposals for Government Spending
At a recent rally in London, Badenoch emphasized her party’s strategy to reduce government spending by £47 billion annually after 2029. She argued that savings would partially come from cuts to welfare, downsizing the Civil Service, scaling back overseas aid, and reassessing the asylum system. The aim, she asserted, is to stimulate economic growth and facilitate tax cuts, including eliminating stamp duty on home purchases.
Concerns about Labour’s Future Moves
Despite her criticism, Badenoch stopped short of promising to reverse any income tax hikes that Labour may enforce. She expressed uncertainty about the economic situation the Labour Party would inherit in four years, alluding to the unpredictability of future financial circumstances.
Responses from Labour
A Labour spokesperson countered that the Conservatives lack credibility, highlighting their failure to apologize for past economic mismanagement, which has led to soaring mortgage rates and record NHS waiting lists. They expressed skepticism regarding Badenoch’s claims of securing £47 billion in cuts without providing detailed plans.
Impending Budget Challenges Ahead
The government faces a significant shortfall in public finances as it prepares for the Budget, with the Office for Budget Responsibility expected to lower productivity projections for the UK economy. This situation may fuel speculation about breaking manifesto pledges and possibly increasing income tax, a move some senior Labour members privately support, while others express deep concerns.
