After warning that “easy answers” to Britain’s economic problems would be “irresponsible”, Rachel Reeves has refused to rule out raising income tax, VAT or National Insurance in her upcoming Budget.
In a speech at Downing Street, the chancellor said politicians had become “addicted to short-term sticking plaster solutions” and hinted that “painful decisions” may be needed later this month to repair the public finances.
Economists say tax rises are now “inevitable” if Labour is to balance the books. The Institute for Fiscal Studies has warned that avoiding income tax increases by targeting smaller levies could do “unnecessary economic damage”.
But some economists and campaigners argue Labour should focus on fairer ways to raise funds – such as reforming wealth and property taxes or closing loopholes used by higher earners.
Supporters of tax rises say honesty is the only route to stability, and that Reeves should prioritise long-term growth, investment and fairness – even if it means breaking manifesto pledges.
Critics warn that hitting working people with higher bills would risk stalling recovery and betraying those already struggling with the cost of living.
So, what should Rachel Reeves do in the upcoming Budget? Should she raise income tax to repair the public finances – or find alternative ways to plug the gap without burdening households further?
We want to hear from you. Share your thoughts in the comments – we’ll feature the most compelling responses in the coming days.
