Starmer and Reeves hint at tax rises to come ahead of unusual pre-budg

Sir Keir Starmer and Rachel Reeves have hinted at tax rises to come when the chancellor delivers the budget later this month.

In a Downing Street speech this morning, Ms Reeves will address “speculation” that an increase in income tax will be announced during the highly-anticipated statement on 26 November.

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Sky News political editor Beth Rigby said it was “highly unusual” for the chancellor to make such a speech, but the Treasury believes she must “try to prepare the ground and make the argument for another big tax-raising budget”.

“I will make the choices necessary to deliver strong foundations for our economy – for this year, and years to come,” Ms Reeves will say.

Last night, Sir Keir gave Labour MPs a taste of what’s to come by warning of the need for “tough but fair” decisions.

Speaking at a party meeting in Westminster, he said the budget “takes place against a difficult economic backdrop”.

“It’s becoming clearer the long-term impact of Tory austerity, their botched Brexit deal and the pandemic on Britain’s productivity is worse than even we feared,” the prime minister said.

“Faced with that, we will make the tough but fair decisions to renew our country and build it for the long term.”

Starmer and Reeves know how hard this is going to be

I don’t need to tell you how difficult and contested this is going to be.

Only a year ago, the chancellor unveiled the biggest tax-raising budget since 1993 and said it was a “once in a parliament event”.

MPs will be fearing a massive backlash should manifesto promises on not raising income tax (and VAT and national insurance) for working people be broken.

Government figures know how hard it’s going to be but argue the chancellor has to level with the public about the hard choices ahead and what is driving her decision-making.

It comes after Sir Keir refused to confirm at Prime Minister’s…