Hard-up Brits are warned to brace for ‘the biggest heist in modern political history’: Rachel Reeves to unveil £35BN tax grab as Labour’s first budget in a generation targets NI, fuel duty, school fees and even bus fares_Nhy
Rachel Reeves will unveil a £35 billion tax bomb today, in what critics dubbed ‘the biggest heist in modern political history.’
In one of the most consequential Budgets for years, the Chancellor will set Britain on a course of high tax, high spending and high borrowing in a gamble designed to kickstart growth.
In remarks released last night, Ms Reeves said: ‘The only way to drive economic growth is to invest, invest, invest.
‘There are no shortcuts. To deliver that investment we must restore economic stability.’
Ms Reeves, who will become the first woman in history to deliver a Budget, will confirm a loosening of the government’s fiscal rules which will enable her to borrow up to £50 billion to spend on infrastructure projects and growth sectors like green energy.
Rachel Reeves is set to put Britain on a course to high tax, high spending and high borrowing in tomorrow’s Budget
Ms Reeves preparing for Wednesday’s Autumn Budget in her office at HM Treasury
The Chancellor is preparing to focus tax hikes on employers, including a £20 billion hit to National Insurance contributions (file photo)
But ministers will be watching nervously for reaction in the City, where the government’s borrowing rate yesterday rose to the highest level since the election, leading to fears of mortgage rate rises.
The Chancellor is also braced for a backlash from business over her decision to focus tax hikes on employers, including a £20 billion hit to National Insurance, which critics have warned will cost jobs and depress wages.
The CBI warned that the tax hike, coupled with a bumper increase in the minimum wage, would ‘make it increasingly difficult for firms to find the headroom to invest in the tech and innovation needed to boost productivity and deliver sustainable increases in wages’.
Investors are also set to be hit by an increase in capital gains tax. And, despite Labour’s pledge to protect ‘working people’, most ordinary workers will also be hit by a decision to extend the six-year freeze in tax thresholds for at least another year.
Tory leadership contender Robert Jenrick said: ‘This Budget completes the biggest heist in modern political history. The Labour Party won power by lying to the British public about their plan to hike taxes.
‘Working people are going to suffer and our economic recovery will take a huge hit. No wonder the public don’t trust politicians.’
Rishi Sunak, who will respond to the Budget on Wednesday in one of his last acts as Tory leader, said the expected rise in NI would be a clear breach of Labour’s manifesto, which pledged not to increase income tax, national Insurance or VAT.
Conservative leadership contender Robert Jenrick said Labour’s first Budget ‘completes the biggest heist in modern political history’
Rishi Sunak will respond to the Budget on Wednesday in one of his last acts as Tory leader
Jeremy Hunt launched a last-ditch attempt to block a ‘highly political’ dossier on his time as Chancellor alongside the Budget
