Overview

• Speaking in Manchester, Stride called an income tax rise the “cleanest” option, arguing a VAT hike would risk stoking inflation and keeping interest rates higher.
• City and party figures expressed dismay, with shadow Treasury colleague Richard Fuller rejecting tax rises and saying the tax burden is already too high.
• At a TaxPayers’ Alliance event, David Frost criticised the stance as a pity, and shadow business secretary Andrew Griffith declined to be drawn when asked to respond.
• CityAM noted the remarks jarred with a Conservative pledge to find £47bn a year through welfare savings and civil service reductions, with proposals including cutting over 100,000 Whitehall roles.
• Economists and the Resolution Foundation have argued that raising income tax, potentially alongside lower national insurance, would be a less damaging way to raise revenue.