Rachel Reeves avoids ruling out tax rises as autumn budget looms

"If we have to build the future of Britain together, we will all have to contribute to that effort, she said. As chancellor, I have to face the world as it is, not the world that I want it to be. And when challenges come our way, the only question is the how to respond to them, not whether to respond, or not, she told reporters."

"Reeves said she would not duck the difficult choices ahead even if they broke her pledge not to put up income tax, VAT or national insurance. I could do what previous governments have done, which is to sweep those challenges under the carpet, to cut capital spending, to make the numbers up. But then we'd be back here in a year, in five years' time, with productivity still on its knees, growth under-performing, national debt continuing to rise. So I'm being honest with people."

The chancellor refused to rule out tax rises in the upcoming budget and foreshadowed a possible income tax increase that would breach Labour's manifesto commitment. She attributed the need for new revenue to worsened public finances after years of economic mismanagement and to global pressures such as tariffs, persistent inflation, volatile supply chains and increased defence spending. The chancellor warned against sweeping problems under the carpet or cutting capital spending, arguing that short-term fixes would leave productivity weak, growth underperforming and national debt rising. She called for shared contribution to rebuild Britain and defended honesty about difficult fiscal choices.

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