Facing the cut after Britain Rahel reeves His manifesto doubled on the pledge Not to increase taxes Fund Labor‘S Expenditure Plans.
In a speech in Manchester Wednesday morning, Chancellor Labor’s plan to spend – ready to be mentioned next week – “fully cost and completely funded” and would not need to increase income tax, Tub Or employee national insurance contribution.
But a major the thinktank has joined the critics from within the government to warned the Chancellor to be warned that there will be no option but to cut other public services.
The Resolution Foundation said that the government has increased departmental expenses by about £ 400BN as it has come to power, but the pressure to increase health and defense expenses will make “difficult to avoid cuts” for other public services.
Reacting to Reavs’ speech, a senior labor source said: “I doubt means a lot of cuts.”
It comes a few days after being committed by the government Major increase in defense funding And as it’s committed to it Restore winter fuel allowance For millions of pensioners in this winter. Sir Cair Coward Two-child is also under pressure to eliminate a cap of profit.
Ruth Curtis, Chief Executive Officer of the Resolution Foundation, said: “The level of departmental expenses will be returned to the level of pre-tapasya by the end of this Parliament, but there may be a cut in public service from increasing pressure to spend all this growth on health and defense.
“The government may chart a course through health or not, which bends on capital, but prevents the increase in day-to-day spending, will be important for the results for everyone else.”
Ben Casswell, Senior Economist National institute of economic and social research (NIESR) told Independent Had to be considered without that cut Tax increases,
He said, “It is unlikely that Chancellors will be able to bear the important movement on policy without some forms of tax growth in the budget of autumn,” he said.
He said that if he did not increase the taxes, the Chancellor “can no longer borrow, and not to spend the day anyway, so yes it will have to be cut from elsewhere.”
Institute of fiscal studies (IFS) Director Paul Johnson This week has also warned that tax growth will be required to meet the commitments of labor spending, especially in the long -awaited light of this week Strategic defense reviewWhich underlines how the armed forces will be funded.
with spending review Setting the departmental budget of the next three years at a distance of only one week, the Chancellor stressed that his plans were fully spent.
However, within the government, senior labor figures are warning Ms. Reeves that labor has abolished the promotion of the manifesto.
It has inspired a civil war within the cabinet on its plans for departmental expenses. Yweet cooper‘S House office And Angela Rener‘S Housing MinistryLocal government and community Are still allegedly caught.
The issue is now becoming a strange focus By -election In Haemilton In Scotland where labor is in danger of coming third in SNP and Improvement UK Since support is faster than the government. Labor will be seen as a political earthquake as a political earthquake to improve a part of the UK easily won by the stormer party last year.
By 2027, raising defense spending to 2.5 percent and ringing of health expenses, in her decision to remove Ms. Reeves will look for an estimated £ 5BN to make a reversal. Winter fuel payment Eliminate millions of pensioners and two child benefits cap.
The list under the danger is the top local government finance, hot home insulation package, future houses deal, border control and policing.
Where he announced the biggest investment during a speech in Manchester transportationMs. Reeves was repeatedly suppressed by journalists on Manifesto to pledge not to increase income tax, VAT or national insurance, but insisted that she would stick to her promises.
He was asked: “Is there a risk of policing, housing and manifesto commitments at risk?”
But Ms. Reeves replied: “We made those commitments in our manifesto and we stick to them. All the manifesto committed we made by us were completely cost and completely funded.”
He highlighted the small taxes that Labor said that it would increase to pay for additional investment in the manifesto – VAT on private school fees, break on non -dome and introduce energy levy.
She moved forward: “Those promises were fully funded. We have raised taxes that put that money in our public services, which is why we can meet our manifesto commitments, in which the major taxes do not increase, who pay the working people – Income Tax, National Insurance and VAT.”
There is a push by many labor MPs and trade unions for the Chancellor, instead to agree to more expenses and increase cash through money taxes instead.
This heading is Ms. Rener, who, according to a leaked memo, wants to pay eight money.
A colleague of Ms. Rener told The Independent that the review of the expenses has now become a “proxy war” towards the party’s future and potentially in the firing line with both Ms. Reeves and Sir Keir Starr with the current labor government.
The source of the senior party warned: “I think this spending reviews will actually look at the end of several manifesto pledge, which is really saving.”
The row dominated the PMQ, where Sir Keir refrained from answering the expenses review, the winter fuel and two child profit cap to answer the detailed questions.
Tory leader Kemi Badenoch claimed that the government “Anarchy! Anarchy! Anarchy!”