Reeves refuses to rule out tax rises

THE Chancellor yesterday repeatedly refused to rule out increasing inheritance tax or capital gains tax in the upcoming Budget as she faced continuing pressure over axing winter fuel payments.

- Katie Harris

Rachel Reeves said she had to make "difficult decisions" as she repeated her claim about a supposed £22billion black hole in the public finances left by the Conservatives.

Shadow chancellor Jeremy Hunt warned that tax hikes were being planned by Ms Reeves and Prime Minister Sir Keir Starmer - who has already admitted October's Budget will be "painful".

And Mr Hunt lashed out at Labour for continuing to try to pin the blame for its tax plans on the previous government.

The Tory former chancellor said yesterday: "The Chancellor's attempt to blame her economic inheritance for her decision to raise taxes tax rises she had always planned will not wash with the public.

"Reeves and Starmer have spent weeks talking down the economy, whilst simultaneously handing over billions in inflation-busting pay rises for their union paymasters. It simply does not add up.

"Labour promised over 50 times in the election they would not raise people's taxes and now they are laying the ground to do just that. We will hold them to account." During the election Labour promised not to raise income tax, national insurance and VAT a pledge Sir Keir repeated on Tuesday as he laid out a gloomy assessment of the public finances left by the Tories.

But asked three times if she could rule out increasing capital gains tax and inheritance tax during a visit to Scotland, Ms Reeves said: "I'm not going to write a Budget two months ahead of delivering it.

Stagnation