The Chancellor is refusing to amend her fiscal rules which threatens further tax hikes which could possibly be announced in the upcoming Autumn Budget.
Rachel Reeves said borrowing money recklessly as Liz Truss did in 2022 caused severe problems for the economy.
Reeves said, “The decisions we made in October mean for the first time the Treasury takes into account the benefits of investment and together the fiscal rules mean, unlike our predecessor, we will not be balancing the book by cutting investment.”
The Chancellor added, “My fiscal rules are non-negotiable. So let me be clear, it’s not me imposing borrowing limits on Government, those limits are the product of economic reality.
“Fiscal rules do matter. The Conservative’s fiscal rules didn’t guarantee stability or investment, and that’s why I changed them in the Autumn Budget.
Day to day to Government spending should be paid for by tax receipts – that’s the sound economic choice and fair choice.
The OECD on Tuesday urged the Chancellor to boost tax revenues and the government has been told to make a “balanced approach.”
This week the Defence Secretary John Healey has refused to rule out tax increase to help fund the UK’s “war readiness.”
