Rachel Reeves faces criticism over budget speech
Rachel Reeves has been ridiculed by ITV presenters Susanna Reid and Lorraine Kelly for her recent speech ahead of the upcoming Budget, which they deemed “bonkers,” reports BritPanorama.
During the address, the Chancellor appeared to signal potential new tax increases, prompting Reid and Kelly to comment that viewers learned “nothing.”
Reeves warned the public to prepare for “pain,” stating that “each of us must do our bit” for the economic recovery. Notably, she did not dismiss the possibility of departing from Labour’s election pledge not to raise income tax, VAT, or National Insurance (NI)—the three largest taxes impacting workers—leading to concerns about future fiscal policies.
In her remarks, Reeves emphasized that she would “not always do what is popular,” with her decisions being guided by “fairness” and “the national interest.” However, Reid and Kelly expressed skepticism, questioning the effectiveness of Reeves’ communication and the absence of specific details in her address.
Reeves reiterated that the forthcoming Budget would aim to cut NHS waiting lists, reduce the national debt, and address the cost of living, albeit with difficult choices ahead. She called for collective effort from the public to secure a prosperous future for the country.
When pressed about potential tax rises, Reeves deferred, stating, “I will set out the specific policy choices on November 26,” while acknowledging that she was “not satisfied” with the UK’s current 1% growth rate.
She announced plans to eliminate waste, claiming to have already identified £14 billion in savings by reducing consultancy costs and cutting “bureaucratic quangos.” Furthermore, Reeves indicated a renewed intent to reform welfare despite previous setbacks caused by dissent within the party ranks.
Responding to Reeves’ statements, Shadow Chancellor Mel Stride remarked that she had “confirmed the fears of households and businesses” by failing to unequivocally rule out tax increases. Stride asserted that if Reeves had genuinely fixed public finances, she would not be entertaining discussions regarding tax hikes or broken promises.
“My message is clear: if Rachel Reeves reduces government spending – including the welfare bill – she doesn’t need to raise taxes again,” Stride stated, emphasizing the importance of maintaining fiscal commitments.
The Chancellor delivered an early morning speech that sets the stage for her tax-raising Budget on November 26, underscoring the pivotal role her upcoming decisions will play in shaping the economic landscape in the UK.
As the debate intensifies over fiscal responsibility and potential tax increases, the political implications of Reeves’ approach remain to be seen, particularly with key dates approaching.
