Reeves won't rule out more tax rises despite CBI pledge

As PM shifts focus from growth to higher living standards

- DAVID MADDOX

Fears are growing that Labour could be planning a new tax raid after Rachel Reeves yesterday refused to confirm a recent pledge not to repeat her £40bn Budget hikes.

The chancellor was pressed on the issue in the Commons by shadow chancellor Mel Stride, and again at a conference in the north of England, over her promise last week to the CBI conference.

With her next major fiscal statement expected in the spring, there is confusion over Labour’s economic policy amid a rumoured shift from delivering growth to raising living standards. Sir Keir Starmer is set to outline the new focus in a speech tomorrow resetting the government’s agenda after just five months in office.

As MPs voted through the controversial Budget increase in national insurance contributions, Mr Stride pressed Ms Reeves on whether she would stick by her pledge at the CBI conference where she told business leaders: “I’m really clear, I’m not coming back with more borrowing or more taxes.” Mr Stride asked if Downing Street has “changed its mind” or if Ms Reeves “spoke without thinking”.