A senior minister confirmed Labour will uphold its tax promises after a welfare policy retreat created budget gaps. Concessions to Labour MPs will delay or negate intended savings of £5 billion by 2030. The Chancellor faces scrutiny as Cabinet minister Pat McFadden warns of financial repercussions from the diluted welfare cuts, yet asserts no plans for tax hikes. Helen Miller from the Institute for Fiscal Studies suggests the government may need to reconsider tax options amidst fiscal challenges. Labour's manifesto explicitly states no tax increases on working individuals.
Cabinet minister Pat McFadden emphasized that Labour will adhere to its tax commitments, refusing to consider increases in income tax, National Insurance, or VAT, stating, "We will keep to the tax promises that we made in our manifesto."
Helen Miller of the Institute for Fiscal Studies highlighted the government's significant shift, stating that it has moved from a planned savings of £5 billion to potentially losing all savings by 2030, indicating pressure to resort to tax hikes.
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