Chancellor Rachel Reeves has denied lying to the public ahead of last week's budget, insisting she raised taxes to a record level to ensure economic stability. According to her, this decision was made to build up "fiscal, economic resilience" and protect public spending.
However, her pre-budget messaging suggested that tax rises were necessary due to a predicted reduction in economic growth expectations by forecasters, a claim that seems at odds with the actual downgrade announced by the Office for Budget Responsibility (OBR). The OBR did indeed lower its projections but also stated that unexpectedly strong wage growth and tax receipts would more than compensate for this.
Reeves has maintained her stance, arguing she acted to build up the fiscal buffer to prevent future tax increases. Her critics argue this was a case of "mission creep," with Reeves using the excuse of low economic growth to justify increased taxes.
The budget has sparked controversy, with opposition politicians calling for Reeves's resignation and Conservative leader Kemi Badenoch accusing her of lying. However, Chancellor Starmer will defend Reeves in a speech on Monday, while also outlining new measures to boost economic growth, including business regulation reform.
However, her pre-budget messaging suggested that tax rises were necessary due to a predicted reduction in economic growth expectations by forecasters, a claim that seems at odds with the actual downgrade announced by the Office for Budget Responsibility (OBR). The OBR did indeed lower its projections but also stated that unexpectedly strong wage growth and tax receipts would more than compensate for this.
Reeves has maintained her stance, arguing she acted to build up the fiscal buffer to prevent future tax increases. Her critics argue this was a case of "mission creep," with Reeves using the excuse of low economic growth to justify increased taxes.
The budget has sparked controversy, with opposition politicians calling for Reeves's resignation and Conservative leader Kemi Badenoch accusing her of lying. However, Chancellor Starmer will defend Reeves in a speech on Monday, while also outlining new measures to boost economic growth, including business regulation reform.
I mean, if she knew there was gonna be strong wage growth and tax receipts, why raise taxes that high? It's like, you're preparing for a rainy day, but then the sun comes out and you still got all that water 
. Reeves said it was about building up fiscal resilience, but maybe she should've been more specific 
. Still, I hope she gets some support from her team and can make things work 
, which isn't always the most effective solution 
The thing is, it feels like she's setting a precedent for future budgets by being super transparent about economic expectations. Can only hope that her critics aren't just trying to stir up drama 
.
. Anyway, I hope Labour does a good job of defending her in that speech on Monday – we need some clarity on all this! 
if you ask me, she was just using the low growth excuse as a cop-out 
anyway, i'm still repping rachel reeves 
no matter what 
. and btw, why is kemi badenoch still going on about rachel lying? like, didn't they already have this convo last week? 
. I mean, she's saying one thing about needing to raise taxes for stability, but really it sounds like she's just making excuses for why she wants more control. And let's be real, if the OBR predicted a slowdown in growth and suddenly those numbers are lower... that's not just a coincidence 
. And yeah, maybe there was a tiny misstep with the OBR downgrade, but come on, it's not like she fabricated an entire narrative out of thin air 
.
. Some people love the tax hikes, some hate 'em... and then you got politicians like Kemi Badenoch who want Reeves's head on a platter 
. But honestly, let's not forget that there are actual economic implications at play here. Maybe we should just focus on figuring out how to make growth work for everyone