The article discusses calls from former Bank of England governor Mervyn King for Chancellor Rachel Reeves to reconsider her tax promises ahead of the upcoming general election. King criticized her pledge to avoid tax increases like VAT or income tax, labeling them as irresponsible. He believes Reeves should adopt more flexible fiscal rules to enable necessary borrowing, which could support increased government spending during economically challenging times. The debate illustrates the tension between Labour's initial tax promises and the economic realities facing the government.
A former Bank of England governor has criticized Chancellor Rachel Reeves' pre-election tax promises, suggesting they are irresponsible and urging her to increase income tax instead.
Mervyn King challenges the Chancellor's fiscal rules and believes they inhibit necessary borrowing to enhance government spending during a critical economic period.
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