Chancellor Rachel Reeves hints at autumn tax rises as she warns of ‘tough choices’ ahead

Chancellor's Plan for Pay Hikes

Chancellor Rachel Reeves has hinted at potential autumn tax rises to finance pay hikes for the public sector, including 400,000 teachers and 1.4 million NHS workers set to receive a 5.5% increase.

Cost of Not Settling

Reeves emphasized the importance of settling with unions to avoid strikes and protect the economy, stating that the cost could be up to £10 billion.

Labour's Approach vs. Tories

Reeves criticized the Tories for not making tough decisions and emphasized Labour's commitment to ensuring that financial decisions are properly balanced.

Shadow Chancellor's Response

Shadow Chancellor Jeremy Hunt called for fiscal restraint and questioned Labour's need for tax rises given low inflation and strong economic growth.

Child Benefit Cap Controversy

Reeves stood firm on not abolishing the two-child benefit cap, citing the need to assess the £3 billion annual cost and its funding source.