Reeves refuses to rule out tax rises after welfare chaos

Rachel Reeves has avoided ruling out future tax rises after admitting the government’s concessions on its welfare reforms had been “damaging”.

- ATHENA STAVROU

The government narrowly avoided a major Commons defeat on Tuesday in the wake of a backbench rebellion after it performed a U-turn on plans restrict eligibility for the personal independence payment (PIP).

But as she faced questions about how the climbdown would affect the Treasury, the chancellor warned there would be “costs to what happened”.

The original welfare proposals had been part of a package that ministers expected would save up to £5bn a year - with economists warning that tax rises are now likely to plug a gap left by the concessions to rebels.