The prime minister also said during a speech in Birmingham that the £2 bus price cap will be raised to £3 and that £240 million would be allocated to initiatives aimed at encouraging people to return to their jobs.
When it releases its first fiscal statement on Wednesday, it comes after weeks of conjecture about how the government intends to boost the economy and plug a £40 billion financial hole.
“It is time to embrace the harsh light of fiscal reality,” Sir Keir added, hinting at what lies next.
“Stability to avoid anarchy. Long-term growth will be fueled by borrowing.
tax increases to restore public services and avoid austerity.
Although Sir Keir did not outline the specific tax hikes, it is generally anticipated that employer national insurance will rise in tandem with potential increases to inheritance and capital gains taxes.
Since Labour’s election manifesto promised not to raise taxes on working people—explicitly ruling out an increase in income tax, national insurance, and VAT—ministers have been frequently questioned about the government’s definition of “working people.”
