Reeves refuses to say she will stick to manifesto pledge on tax rises and insists she must face world ‘as it is’ – UK politics live

Chancellor Rachel Reeves has indicated that Labour will likely break its manifesto pledge not to raise taxes, stating that she must address the "world as it is." In a pre-budget speech and subsequent question-and-answer session, Reeves signaled that tax increases are necessary to fund public services and maintain the government's fiscal rules, rejecting austerity measures and further borrowing. She suggested that "everyone must contribute" to the nation's future, implying that tax rises may not be confined to the wealthiest. Commentators widely interpret Reeves's remarks as a precursor to raising income tax, despite the manifesto commitment. The weaker economic forecasts from the Office for Budget Responsibility (OBR) and Reeves's refusal to implement deep spending cuts are seen as key drivers behind this potential policy shift. The Treasury appears to be preparing the public and financial markets for these tax increases by clearly outlining the economic context and justification in advance. Rival parties, including the Conservatives, Reform UK, the Greens, and the SNP, have criticized Reeves's stance. The Conservatives, through Kemi Badenoch, argue that Reeves should accept responsibility for the difficult fiscal choices rather than blaming the previous government. The Greens and Reform UK have called for wealth taxes and spending cuts, respectively, while the SNP claims Labour misled voters about its tax intentions. The Liberal Dem... download the app to read more