Overview
- Reeves told BBC Radio 5 Live that sticking to the manifesto on income tax, National Insurance and VAT would require deep cuts to capital investment, indicating a potential reversal.
- She also signalled action to reduce child poverty by addressing the two-child benefit cap, with options under discussion including dilution or abolition.
- Senior Labour voices warned that breaking the tax pledge could be her “Nick Clegg moment,” while Conservatives criticised her for choosing tax rises over spending restraint.
- Reeves cited a worse-than-expected fiscal inheritance and an OBR downgrade to growth forecasts as reasons for revisiting the party’s tax commitments.
- A City AM/Freshwater poll found 66% of voters say she should resign if she raises income tax, as unconfirmed reports speculate about a 2p rate rise offset by a National Insurance cut and changes to dividend tax and pensions.