Kemi Badenoch demands Rachel Reeves be sacked if taxes rise in upcoming Budget
Kemi Badenoch has demanded that Rachel Reeves be dismissed if she implements tax increases in the forthcoming Budget, which is set to be announced on November 26, reports BritPanorama.
The Chancellor, Reeves, is reportedly considering breaking Labour’s manifesto commitment by raising income tax. This potential move comes as the government grapples with a growing fiscal challenge, including recent welfare policy shifts and persistent interest rates.
In a speech delivered this morning, the Conservative leader stated, “If Rachel Reeves puts up tax, give her the axe.” Badenoch insisted that if Reeves cannot manage spending effectively, then Keir Starmer should take action to remove her from her position. However, Badenoch stopped short of promising to reverse any increase in income tax, explaining that it remains too early to finalise economic policies ahead of the next election.
Labour’s manifesto explicitly promised not to raise the headline rates of income tax, national insurance, or VAT. Nonetheless, Reeves previously used last year’s Budget to implement tax increases amounting to £40 billion, including a £25 billion rise in national insurance contributions.
Despite claims from Reeves that the financial tightness had “wiped the slate clean,” she is now contemplating another round of tax hikes to address budgetary shortfalls amid sluggish economic growth, insufficient spending cuts, and a recent productivity downgrade reported by the Office for Budget Responsibility (OBR).
At Prime Minister’s Questions, Starmer was pressed on his earlier promise not to increase these three taxes. While he had reiterated this commitment in June, he indicated that the government would “lay out our plans” during the upcoming Budget announcement.
Banking officials are evaluating a range of options, including potential increases on property, inheritance, and ISAs, or potentially breaching Labour’s pledge through a comprehensive increase in income tax.
Badenoch pointed out, “Four months ago, the PM ruled out raising these taxes. Today, he won’t. Why? Because Labour’s high taxes and out-of-control spending have wrecked the economy, and they’re coming back for more. Nobody voted for this.”
In response, Lib Dem Treasury spokeswoman Daisy Cooper commented, “People up and down the country will be incredibly worried by what looks like yet another U-turn from this government. Many households will now be tightening their belts even further fearing more tax hikes to come in the weeks ahead.”
The impending Budget presents a critical moment for the ruling Labour Party, navigating the delicate balance between fiscal responsibility and public sentiment, as pressures mount from all sides.
