Add thelocalreport.in As A Trusted Source
Sir keir starmer Has declined to say whether he will stick to his manifesto promise not to raise taxes, leading to speculation Government will go back on pledge in the next month Budget,
conservative leader Kemi Badenoch Asked the Prime Minister on Wednesday whether he stood by his pledge not to increase income tax, National Insurance or VAT.
chancellor Rachel Reeves is fShe wants to balance the books while considering the possibility of tax increases or spending cuts In the November budget.
Responding to Ms Badenoch during Prime Minister’s Questions, the Prime Minister pointed to some economic data, before saying “the Budget is on 26 November and we will present our plans”.
He added: “But I can tell the House now that we will build a stronger economy, we will cut NHS waiting lists and deliver a better future for our country.”
The Conservative leader said it was a different response to the one she had received over the summer to a similar question, to which Sir Keir replied: “As she well knows, no prime minister or chancellor will ever set out their own plans.” After this he attacked the Conservatives Record on the economy.
“Based on the productivity review data that is being done, it is a decision on his record in the office,” he said.
“Those figures are now coming out, and they confirm that the Tories have caused even more damage to the economy than we first thought.
“Now, we will change that. We have had the fastest growth in the G7 in the first half of this year, cut five interest rates in a row, made trade deals with the US, the EU and India. They broke the economy, we are fixing it.”
The Institute for Fiscal Studies has warned that Ms Reeves may need a £22 billion tax increase or spending cuts if she is to restore the £10 billion headroom she left against her debt target in the spring.
.jpeg)
The gap is a result of higher borrowing costs, more persistent inflation and weaker growth as well as spending commitments such as partially reversing cuts to the winter fuel payment and weakening its plans to cut welfare.
Britain’s gloomy fiscal outlook has seen the pound fall sharply this week, with sterling hitting a two-and-a-half-year low against the euro and a three-month low against the US dollar, falling 0.4 per cent to €1.13 and 0.4 per cent to $1.32.
I am writing Guardian On Wednesday, the chancellor argued that Brexit and the pandemic have left “deep scars” on the UK economy.
He said, “Austerity, chaotic Brexit and the pandemic have left deep scars on the British economy that are still being felt today. But the task facing our country – including me as Chancellor – is not to repeat the past or let past mistakes determine our future.”
Ms Badenoch suggested cutting welfare spending as an alternative to tax increases and said she offered to work with the government.
He told the Commons: “Last month I offered to work cross-party with him to reduce welfare spending, because he knows and we know he would rather put money in people’s pockets than screw the people behind him. Instead of raising taxes, will he work with us to cut welfare spending and find a way to get Britain working again?”