Although she was opposed to raising taxes on the working class, the chancellor stated that the public had been “misled for too long” about the status of the nation’s finances.
In response to the question of whether people should brace themselves for tax hikes in the fall, she stated, “There will be more difficult decisions” on expenditure, welfare, and taxes.
Ms. Reeves pledged during the election campaign to keep the three main taxes—income tax, VAT, and national insurance—at current levels.
However, there were rumors that Labour might then target inheritance and capital gains taxation.
“I don’t want to increase taxes on working people,” Ms. Reeves stated during a news conference that followed her address to MPs in which she revealed a series of spending cuts to make up for a £22 billion financial gap.
The truth is that on July 4, when we went to the polls, we were unaware of this £22 billion black hole.
Therefore, in the budget and later this year during the expenditure review, there will be more challenging choices to be made about tax, welfare, and spending.
