Rachel Reeves grilled by Susanna Reid over Labour tax pledge breach
Reid grills Reeves over Labour tax pledge breach

Chancellor Rachel Reeves found herself in the hot seat during a tense appearance on Good Morning Britain, where presenter Susanna Reid delivered a forensic interrogation about whether the Labour government had broken its manifesto commitments in yesterday's Budget.

The Heated Exchange Over Tax Promises

The confrontation came just one day after Reeves unveiled what critics are calling a £30 billion assault on British workers through a series of tax measures. The Chancellor faced relentless questioning from Reid about the apparent contradiction between Labour's election promise not to increase taxes on working people and the reality of her Budget announcements.

During the awkward encounter, Reeves repeatedly denied breaching the manifesto pledge, insisting the document only committed to not changing tax 'rates' rather than thresholds. The Chancellor appeared flustered as Reid refused to let her off the hook, pressing her on how voters could trust future promises from the government.

"How can anyone believe anything you say?" Reid demanded during one particularly heated moment of the exchange. Reeves responded by stating: "I am Chancellor in the world as it is and not in the world as I might like it to be."

Budget Measures Under Scrutiny

The controversial Budget includes several significant tax changes that have raised eyebrows among economists and the public alike. Among the most contentious measures are a new pay-per-mile tax for electric vehicles, increased taxes on online betting, and what's being described as a 'mansion tax' on properties valued over £2 million.

Most significantly, the Chancellor introduced a £13 billion freeze on income tax thresholds for the next three years, a move that will drag millions more workers into higher tax brackets as wages increase with inflation. By 2030, around a quarter of the working population will be paying higher or top rate tax, up from just 15% when the freeze was first imposed in 2021.

The Office for Budget Responsibility delivered further bad news, revealing that economic growth under Labour would be even lower than forecast last year. The watchdog also warned that none of the 88 measures unveiled by Ms Reeves would have a 'material impact' on boosting GDP.

Public Backlash and Political Fallout

The Budget has sparked immediate backlash from across the political spectrum and among ordinary taxpayers. On social media platform X, one middle-aged single parent expressed frustration: "Worked hard, earn higher rate tax salary. Never benefitted from child benefit due to salary. Striving to pay into pension to secure a good retirement. Now paying for other people's children."

Another comment highlighted the human impact: "I'm a single father and yesterday's budget has made it harder to spend time with my son as I have to work longer to keep the lights on at home."

Meanwhile, the decision to spend £3 billion annually axing the two-child benefit cap has drawn criticism from fiscal conservatives. The OBR warned this would result in a further 25,000 large families claiming benefits, at an estimated cost of £300 million.

The tax burden is now projected to reach a new peak as a proportion of GDP, reaching levels not seen in records that extend back more than 300 years. As the political fallout continues, many are watching to see whether the Chancellor's attempts to balance the books will cost the government public trust.