Embattled Chancellor Rachel Reeves has been given a stern warning by ex Labour Shadow Chancellor John McDonnell not to impose big welfare cuts to head off the economic crisis. Mr McDonnell argued that such a move would be politically suicidal and would lead to significant backlash from hard-pressed voters, ultimately triggering a recession. He emphasized the need to prioritize voters' needs over economic markets, indicating that imposing cuts could be detrimental to Labour's future prospects.
McDonnell's comments arise as Reeves considers substantial public spending cuts in an effort to stabilize the economy. He pointed out that Britain has a significant number of billionaires, suggesting that it's time for them to contribute more tax. He criticized Reeves and Sir Keir Starmer for preemptively ruling out tax increases before elections, implying that this strategy has restricted Labour's ability to make necessary fiscal changes and could alienate key voter demographics.
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