Chancellor Rachel Reeves suggested that public sector workers could see above-inflation pay rises as inflation edges up, prompting discussions on the prospects for tax and spending reforms.
The rise in inflation, which increased to 2.2% in July, has triggered warnings from some political figures about potential tax hikes, with Reeves emphasizing promises made to the electorate.
Reeves highlighted a £22 billion deficit in the public finances she attributed to the previous Conservative government, indicating that substantial spending increases will be necessary.
Labour's manifesto commitments involve no new taxes on national insurance, income tax, or VAT; however, Reeves acknowledged the necessity for adjustments if financial pressures continue.
[
Collection
]
[
|
...
]