- Labour's Transport Secretary Heidi Alexander refused to rule out higher taxes in the upcoming Budget, though she stated the government would not increase taxes for people on modest incomes.
- Ms Alexander did not directly rule out a wealth tax, stating it was not directly discussed at a recent cabinet away day, despite calls from unions and Lord Neil Kinnock, but said any changes would be guided by “fairness”.
- The shadow home secretary, Chris Philp, interpreted these comments as a strong indication of impending tax increases in the autumn.
- Chancellor Rachel Reeves faces significant pressure to raise funds following an Office for Budget Responsibility warning that the UK's finances are on an “unsustainable” path.
- While Labour has pledged not to increase income tax, VAT, or national insurance, the party has not ruled out extending stealth taxes or lifting the freeze on income tax thresholds.
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