Lucy Powell says Labour must stand by promise not to raise key taxes

Lucy Powell, Labour’s new deputy leader, has said the government should stand by its manifesto commitment not to raise income tax, national insurance or VAT, amid signs that it may be preparing to break that promise. Powell, who left Keir Starmer’s cabinet in the reshuffle before being elected deputy leader last month, said the budget needed to be about putting more money, not less, into ordinary people’s pockets. Speaking to BBC Radio 5 Live, Powell said: “It’s really important we stand by the promises we were elected on and do what we said we would do.” She added: “We should be following through on our manifesto, of course. There’s no question about that.” Powell also said the two-child benefit cap “should be lifted and it should be lifted in full” as a matter of urgency. “Every year that passes with this policy in place, another 40,000 minimum, 40,000 children, are pushed into deep levels of poverty as a result of it and that’s why it is urgent that we do lift it and we lift it in full.” Her remarks are likely to be uncomfortable for the chancellor, Rachel Reeves, and Starmer as both have in recent weeks declined to repeat their commitments to stand by the manifesto pledge on tax. The government has been examining the possibility of raising income tax as a way of helping to plug a £30bn hole in the public finances and leave an extra buffer for potential financial shocks.