Commitment to Tax Pledge

British Chancellor Rachel Reeves has firmly committed to not increasing income tax, VAT, or National Insurance, adhering to the Labour manifesto's promises made before the 2024 general election.

Economic Context and Decisions

"Despite the necessity to adjust taxes in the last Budget to address the fiscal deficit inherited from the Conservatives, we ensured that working people were not burdened with additional taxes," Reeves explained in an interview with the Huffington Post.

The Labour government has undertaken significant reductions in welfare spending, a move coinciding with the Office for Budget Responsibility's revision of the 2025 growth forecast from 2% down to 1%.