Rachel Reeves has been accused of “outright lies” over her previous pledge to not rise national insurance.
In response to her promise, British economist Andrew Sentance blasted the Labour Chancellor’s pledge online, posting: “How can the Chancellor say this with a straight face?
“It is an outright falsehood.
“Businesses and economic forecasters have made clear that higher employer NI means higher inflation and a bigger wage squeeze for working people.”
Rachel Reeves posted to Twitter earlier today, saying: “Families are still struggling with the cost of living and I’m fighting to put more money in the pockets of working people”
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Rachel Reeves posted to X earlier today, saying: “Families are still struggling with the cost of living and I’m fighting to put more money in the pockets of working people.
“That’s why we protected their payslips with no rise in their national insurance, income tax or VAT, boosted the national living wage and froze fuel duty.”
Her post attracted a slew of criticism online, with one user commenting: “You are making life harder for the average person with every decision.”
Consistently throughout the General Election campaign, Keir Starmer and Rachel Reeves vowed not to raise taxes for “working people”.
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However, since being in Government, Starmer’s Cabinet has blamed the previous Conservative administration for their alleged failings and shortcomings during their administration.
As a result, Rachel Reeves delivered a very widely criticised Budgets at the end of October earlier this year.
Treasury documents have outlined policies to raise government spending by almost £70billion each year until 2029.
This spending is set to be funded by tax increases, while the rest is meant to be taken from an increase in the UK’s borrowing.
Lead of the Opposition Kemi Badenoch has announced that the Tories would approach Britain’s economy “in a different way” and would be the opposite of what Keir Starmer’s Government was doing
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As it stands, the national insurance increase for employers is expected to rake in £20bn per annum – leading it to become of the largest tax policies of all time.
In the next financial year, employers must pay 15 per cent of national insurance on wages higher than £5,000.
Lead of the Opposition Kemi Badenoch has announced that the Tories would approach Britain’s economy “in a different way” and would be the opposite of what Keir Starmer’s Government was doing.
Additionally, Badenoch blasted Reeves’ decision, calling the tax hike “not coherent” as the rise would signal lower pay, while keeping prices high.
