Cabinet minister Pat McFadden has declined to rule out tax rises warning there will be “financial consequences” to the Prime Minister’s last minute backtrack on his welfare reforms.
Despite this he claims that Labour is committed to “keep to the tax promises” in their election manifesto.
McFadden was asked if he can rule out tax rises, he told BBC Breakfast “I’m not going to speculate on the budget.
“We will keep to the tax promises that we made in our manifesto when we fought the election last year. But it doesn’t make sense for me to speculate on something where, as I say, there are so many moving parts of which this is only one element.”
The Institute for Fiscal Studies’ incoming director Helen Miller said: “Since departmental spending plans are now effectively locked in, and the Government has already had to row back on planned cuts to pensioner benefits and working-age benefits, tax rises would look increasingly likely.
“This will doubtless intensify the speculation over the summer about which taxes may rise and by how much.”
Shadow chancellor Sir Mel Stride said: “Tax rises are on the way to pay for Labour’s mismanagement of the economy.
“Hard-working families will have an agonising summer waiting to hear how Rachel Reeves will claw back the cash to make up for the failings of this weak Prime Minister.”
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