Chancellor Rachel Reeves has defended Labour's decision to raise taxes in the 2024 Budget, marking it as one of the largest tax increases since 1993.
Reeves emphasized that while it is a substantial budget with £40 billion in tax hikes, it was necessary to address a “£22 billion black hole” in the public finances.
Reeves noted that it would be "irresponsible" to rule out additional tax hikes over the next five years, though she described this increase as a “once-in-a-parliament” measure.
This budget is Labour’s first since 2010, with Reeves justifying the tax hikes as a necessary step to bring “stability” back to the economy, aligning with Labour’s manifesto goal to restore economic stability.
She also pointed to the significant funding increase for the NHS and other essential services, stating that without it, services would be at risk of cuts.
When questioned about comparisons to former Labour leader Jeremy Corbyn’s policies, Reeves dismissed any similarities, noting her opposition to his previous policies and framing the budget as an open and transparent approach to addressing the nation’s financial needs.
Source:
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