Rachel Reeves has responded to accusations of breaking manifesto promises and also criticized Nigel Farage. The Chancellor defended her decision to freeze income tax thresholds until 2031, which will result in over 1.5 million individuals experiencing tax increases as their incomes rise.
During the last General Election, the Labour Party promised not to raise taxes for working people, with Reeves previously opposing threshold freezes. In response to Nigel Farage’s criticism that the Budget was detrimental to aspiration, Reeves stated that the government supports ambition. She also commented on Nathan Gill’s imprisonment for accepting Russian bribes, urging Farage to address internal issues in his party.
In multiple interviews following the Budget announcement, Reeves was questioned about potentially breaching Labour’s manifesto commitment. She explained that she made the decision to freeze thresholds starting in 2028 due to changing circumstances and global events. While acknowledging the increased burden on working people, she highlighted other measures in the Budget aimed at alleviating costs.
Despite rumors suggesting a potential income tax rate hike, Reeves did not implement one. However, economists argue that failing to adjust thresholds effectively amounts to a tax increase. Ben Zaranko from the Institute for Fiscal Studies noted that this move contradicts manifesto promises and unfairly burdens working individuals.
When reminded of the manifesto pledge by a Sky News host, Reeves acknowledged that freezing thresholds from 2028 would lead to increased contributions from working people. She defended her approach by emphasizing minimal impact on individuals.
Expressing pride in her Budget, Reeves emphasized her commitment to improving the lives of ordinary individuals from working-class backgrounds. She stated her belief in achieving this goal through the Budget and expressed eagerness to continue promoting economic growth and supporting working people financially.