"Ahead of last year's general election, Labour promised not to increase taxes on "working people", including National Insurance, Income Tax and VAT. Asked whether it would be acceptable to break this promise, Powell told the BBC: "We should be following through on our manifesto, of course. There's no question about that." Chancellor Rachel Reeves is widely expected to increase taxes in her Budget this month, with the government repeatedly refusing to rule out an income tax hike. Economists say Reeves may need tax rises totalling as much as 30bn to meet her financial rules by a comfortable margin."
"Powell also called for the two-child benefit cap to be lifted "in full", saying this was the only way to ensure child poverty falls significantly over the course of the Parliament. She added that the issue was "urgent" because every year the policy is in place at least 40,000 children "are pushed into deep levels of poverty as a result". The government has been facing growing pressure from its own MPs to lift the cap, which restricts child tax credit and universal credit to the first two children in most households. Reeves is expected to make changes to the cap, which was introduced by the Conservatives, in her Budget. However, experts estimate that scrapping it completely would cost around 3.5bn a year."
Lucy Powell said Labour should follow through on its manifesto pledge not to raise taxes on working people, specifically naming National Insurance, Income Tax and VAT. Powell insisted standing by promises is essential to maintain public trust as Chancellor Rachel Reeves is widely expected to introduce tax increases to meet fiscal rules, possibly totaling around £30bn. Powell urged that the two-child benefit cap be lifted in full, calling the issue urgent because it pushes at least 40,000 children each year into deep poverty. Scrapping the cap is estimated to cost about £3.5bn annually, though partial changes are being considered.
Read at www.bbc.com
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