Rachel Reeves Sticks to Manifesto Amid Tax Speculation

British finance minister Rachel Reeves has reaffirmed her commitment to the Labour Party's manifesto promises, stating that there will be no increases to VAT, national insurance contributions, or income tax rates ahead of the upcoming budget on November 26.

Despite this assurance, there is widespread speculation regarding a potential shift in this stance, as the pressure to balance the nation's books intensifies. Economists highlight the challenges brought on by elevated borrowing costs, a cloudy growth outlook, and parliamentary blockades on welfare cuts.

Speaking on Times Radio, Reeves emphasized her dedication to the original financial pledges, even amid concerns about finding additional revenue. The Labour Party's position will be closely scrutinized as the fiscal narrative unfolds leading up to the July 2024 election.

(With inputs from agencies.)