Virtually all new Chancellors raise taxes in their first Budget. But few plan to do so by quite as much as Rachel Reeves. The much-vaunted £22 billion fiscal blackhole seems to be growing ever wider, with reports swirling that the Chancellor is seeking to raise up to £40 billion in taxes to balance the books, protect some departments and fund higher public sector pay deals.
This already difficult task has been made harder still by the Government’s self-imposed restrictions. In the lead up to the general election, when Labour was focused on winning at all costs, the party ruled out rises to income tax, VAT and national insurance. That is, the three largest revenue raisers available to the Exchequer.
