Rachel Reeves admits challenges of £25bn Budget tax raid for businesses

Shadow Treasury Minister criticizes Rachel Reeves

In a recent announcement, Chancellor Rachel Reeves acknowledged the difficulties that businesses will face in absorbing the £25 billion Budget tax raid. She also highlighted the impact on charities and local councils due to the National Insurance Contributions increase.

Rachel Reeves addressed the concerns, stating that the tax increase, especially the national insurance rise, will pose challenges for businesses, charities, and local authorities. She emphasized that the government's commitment to not increase taxes on working people led to adjustments in other areas, including taxes on the wealthiest in society.

Criticism from Shadow Treasury Minister

Shadow Treasury Minister Richard Fuller criticized Rachel Reeves, accusing her of undermining business confidence. He pointed out inconsistencies in her statements, referencing her previous promise at a CBI speech about no further tax increases in this Parliament. Fuller questioned the government's ability to provide stability and credibility for businesses amidst changing tax policies.