Uproar at Treasury demands for departmental savings was overcome last week, but insiders fear benefit cuts will be the next bump in the road
Reeves and Starmer will be abroad this week, leaving Angela Rayner, who is reported to be fighting her corner fiercely, handling PMQs.Reeves and Starmer will be abroad this week, leaving Angela Rayner, who is reported to be fighting her corner fiercely, handling PMQs.
“Health is probably just about OK, but I’m not sure about anyone else,” said one concerned figure. “Across the board, there are concerns about what we are being asked to do.” While Labour insiders say this meets its pledge not to increase national insurance on “working people”, the Conservative claims of betrayal will become increasingly furious. Similar dangers lie with a continuation of a freeze to income tax thresholds – effectively pushing up income tax, though the overall rates will remain intact.
However, others believe Reeves has played a canny game. Having possible tax rises out in the open ensures that they do not come as a surprise, while signalling to the markets that additional spending is being prudently raised from tax. “There is such a long time until the spending review,” said one official. “That’s when we can actually get on and do things. We are facing the same problem again. We haven’t been good enough at telling our story.”
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