Minister refuses to rule out tax hikes in autumn budget

Starmer ally leaves possibility of hikes open as Reeves sets out spending cuts

- Nicholas Cecil

ONE of Sir Keir Starmer’s close allies today refused to rule out tax rises in an autumn budget as Labour seeks to plug a multi-billion-pound black hole in the public finances.

Cabinet Office minister Pat McFadden said the new Government would stick to its election manifesto pledge not to hike VAT, income tax or national insurance. However, ahead of Chancellor Rachel Reeves announcing lower spending to deal with the public finances crisis, he left open the prospect of a series of other tax increases.

Mr McFadden told BBC radio: “We said during the election that there would be no rises in income tax, VAT or national insurance. Those commitments hold.

“People should not expect announcements about taxation today. Today is about setting out candidly the situation that we have discovered and responding with some very necessary and tough decisions about spending.”

His comments, though, are likely to fuel expectations of tax rises later this year, most likely targeted at the wealthy and which could include changes to inheritance tax and capital gains tax.