In a recent statement, the shadow chancellor of the Labour Party, Rachel Reeves, declared that the party’s manifesto is “ready” to be published. Reeves made this announcement during a campaign visit to a supermarket in west London, where she also criticised the government’s plans for “uncosted, unfunded tax cuts.”
Reeves specifically targeted the Conservative Party, suggesting that their proposed tax cuts could lead to a repeat of the controversial mini budget introduced by former Chancellor Liz Truss in 2022. She expressed concern that the Conservatives were putting forward tax policies without proper funding, similar to what had occurred under Truss’s leadership.
“I want taxes on working people to be lower,” Reeves stated, “but the Conservatives have now put forward a number of un-costed, unfunded tax cuts similar to what Liz Truss did just 18 months ago.” She emphasised the risk of another five years of Conservative rule resulting in a repeat of such policies.
Earlier this month, Conservative Party leader Jeremy Hunt had signalled a desire to reduce the tax burden under a Conservative government. He proposed cutting taxes in the autumn, following the 2p reduction in national insurance rates announced in the spring budget. Additionally, Hunt expressed a long-term goal of completely scrapping national insurance.
However, accusations that scrapping national insurance would create a £46 billion funding gap and lead to higher taxes on pensioners have been labelled as “fake news” by Hunt. The debate over tax policy remains a central issue in the upcoming election, with both major parties presenting contrasting visions for the country’s economic future. Voters will have to weigh the promises and risks associated with each party’s tax proposals as they head to the polls.
