Rachel Reeves has affirmed that she will not step down if she implements tax increases in her upcoming Autumn Budget. The Chancellor recently declined to uphold Labour’s election pledge of no rises in income tax, VAT, or national insurance. She acknowledged the necessity of making difficult choices in the November 26 Budget to prioritize reducing NHS waiting lists, lowering the cost of living, and cutting national debt.

During an interview with LBC’s Andrew Marr, Ms. Reeves was challenged about the possibility of resigning if she raises income tax. He suggested that she could address the public in the Budget by admitting the challenging circumstances and the need for tax hikes, despite her previous promise. In response, Ms. Reeves raised concerns about the impact on financial markets if she were to resign.

She emphasized her credibility in managing public finances during challenging times, pointing out the economy’s resilience and growth under her stewardship. Addressing concerns about breaking Labour’s manifesto commitments, she stressed the importance of transparency and integrity in economic decision-making, contrasting her approach with past practices of manipulating figures to meet targets at the expense of honesty.

Ms. Reeves, speaking from Downing Street ahead of the Budget, hinted at potential tax increases, emphasizing the need for collective effort in the face of economic realities. She criticized the austerity measures of the previous government and highlighted the negative impact of the Brexit deal on businesses.

Asserting her commitment to making tough but necessary choices, Ms. Reeves defended her role as Chancellor, emphasizing the responsibility to prioritize the country’s long-term interests over short-term popularity. She reassured the public that her Budget would not be as severe as previous ones, clarifying that last year’s significant tax rises were a one-time measure to address fiscal challenges left by the previous government.