IT'S THE SAME OLD TAX RISE PAIN WITH LABOUR!

New raid on household incomes likely after Reeves warns of 'harder choices' ahead

- By Martyn Brown Political Editor

RACHEL Reeves lit the fuse for another tax bombshell as she warned households of further painful increases.

The Chancellor yesterday all but revealed that she will have no choice but to fill a £50billion black hole in public finances when she delivers her Budget next month.

She complained that global problems made “harder choices” on taxes and spending inevitable, laying the groundwork for a brutal raid in just eight weeks as she addressed Labour supporters at the party's conference in Liverpool.

Ms Reeves said: “In the months ahead we will face further tests, with the choices to come made all the harder by harsh global headwinds and the long-term damage done to our country, which is becoming ever clearer." Experts have predicted that Ms Reeves will have to increase taxes or cut spending to fill the colossal shortfall in her Budget, which the National Institute of Economic and Social Research has estimated might be as much as £50billion.

The Chancellor vowed yesterday that she would "not take risks with Britain's economic stability" and added: "I will make my choices at that Budget.

"They will be choices to take our country forward. And whatever tests come our way, whatever tests come my way, I make this commitment to you: I will take no risks with the trust placed in us by the British people.' Ms Reeves also refused to rule out categorically increasing VAT on November 26.

The Tories yesterday warned that millions of households should brace for a punishing tax raid.