Articles by Freddie Lynne

Politics

Chancellor Reeves hints at income tax rise and two-child benefit limit in new budget

Rachel Reeves has indicated it will not be feasible to adhere to Labour's manifesto pledges on taxation without implementing "deep cuts" to public expenditure. This represents the strongest indication yet that the Chancellor is preparing to abandon the party's commitment not to increase income tax, VAT, or national insurance. She has also suggested the government will abolish the cruel two-child benefit cap at the Budget on 26 November to lift hundreds of thousands of children out of poverty. Ms Reeves stated it was not acceptable that a "child is penalised because they are in a bigger family". However, the Chancellor emphasised on Monday that no final determinations have been reached regarding taxation and expenditure - with merely a fortnight remaining, reports the Mirror. Ms Reeves told BBC 5 Live: "I will set out the choices in the Budget. It would, of course be possible to stick with the manifesto commitments, but that would require things like deep cuts in capital spending and the reason why our productivity and our growth has been so poor these last few years is because governments have always taken the easy option to cut investment - in rail and road projects, in energy projects, in digital infrastructure." She continued: "So we've always got choices to make, and what I promised during the election campaign was to bring stability back to our economy, and what I can promise now is I will always do what I think is right for our country." When questioned about the two-child benefit restriction - a Conservative-era measure blamed for keeping children trapped in poverty - Ms Reeves stated child poverty ought not to be tolerated. There have been suggestions that Keir Starmer and Ms Reeves are considering diluting the policy rather than completely abolishing it. However, the Chancellor stated: "There are plenty of reasons why people make decisions to have three, four children, but then find themselves in difficult times. "You also have things like adoption. Or, or foster caring. Lots and lots of different reasons why families change shape and size, over time. I don't think that it's right that a child is penalised because they are in a bigger family., through no fault of their own. "And so we will take action on child poverty. The last Labour government, a proudly reduced child poverty. And we will reduce child poverty as well."