Rachel Reeves has declined to rule out tax rises in the upcoming autumn budget, stating she must address the economic challenges as they are, not as she wishes them to be. The Chancellor indicated a possible breach of Labour's manifesto pledge on income tax, citing worse-than-expected public finances due to previous mismanagement.
Speaking at a Downing Street press conference, Reeves emphasised the need for collective contribution: 'If we have to build the future of Britain together, we will all have to contribute.' She stressed that the economic landscape has deteriorated since last year's financial statement, with global tariffs, inflation, supply chain volatility, and defence spending pressures.
Reeves rejected criticisms of breaking manifesto commitments, insisting she must 'do the right thing' even if unpopular. She outlined her budget priorities as the NHS, cost of living, and national debt reduction. Additionally, she announced another attempt at welfare reform after previous plans were blocked by Labour MPs.
Conservative leader Kemi Badenoch accused Reeves of presiding over 'a masterclass in managed decline' and blamed her for rising unemployment. Badenoch stated that the Chancellor lacks a plan and is only blaming others, describing her as 'back against the wall' and uncertain.
