RACHEL Reeves will today warn a swathe of tax rises are needed to balance the books in this month’s Budget.
The Chancellor faces a ferocious backlash over the hikes as No10 refuses to recommit to Labour’s manifesto tax pledge.
Her intervention, in an early morning speech, is set to fuel speculation of increases to income tax, national insurance and VAT.
It comes as an influential think-tank with close links to Labour said tax hikes are now “inevitable” to help fill a £30billion financial black hole.
Ms Reeves is expected to say: “You will have heard a lot of speculation about the choices I will make.
“I understand that — these are choices that will shape our economy for years to come.
“But it is important people understand the circumstances we are facing, the principles guiding my choices — and why I believe they will be the right choices for the country.”
Sir Keir Starmer told his backbenchers last night that the “long-term impact” of Tory spending cuts, Brexit and the pandemic on productivity levels was “worse than we feared”.
He added: “Faced with that, we will make tough but fair decisions to renew our country and build it for the long term.”
When asked if the manifesto commitment stood, No10 said the Budget would “strike the right balance” between funding public services and encouraging growth.
Ms Reeves will use today’s speech to say her Budget on November 26 will be “focused squarely” on the public’s priorities of protecting the NHS, reducing the national debt and easing cost-of-living pressures.
Shadow Chancellor Mel Stride said: “It’s taken Rachel Reeves a year to admit her first Budget was a failure.
“Now, with an emergency press conference, she is all but confirming what many feared — higher taxes are on the way.”
