No Tax Increases Under Labour's Watch

In a firm commitment to the promises made in the Labour manifesto before the 2024 general election, British Chancellor Rachel Reeves has vowed not to raise income tax, value-added tax (VAT), or National Insurance. This announcement comes as the government navigates through economic uncertainties and a revised growth forecast.

Economic Stewardship in Tough Times

Reeves highlighted her approach to handling the public finances, stating, "Even when I had to put up taxes in the last Budget to deal with the black hole in the public finances that the Conservatives bequeathed to the government in which I serve, we didn’t increase taxes on working people." This statement underscores the Labour government's focus on protecting working-class citizens from additional financial burdens.

Adjusting to New Economic Realities

The Labour government has already implemented significant cuts to welfare spending, a move that coincides with the Office for Budget Responsibility's decision to lower the growth forecast for 2025 from 2% to 1%. These adjustments reflect the challenging economic landscape the UK currently faces.