Labour’s new deputy leader, Lucy Powell, has cautioned that the party must uphold its commitments outlined in the manifesto regarding taxes. Powell emphasized the importance of Keir Starmer’s government honoring the pledges made before their significant election win.
The warning from Powell comes shortly after Rachel Reeves hinted at potential tax increases in a pre-Budget speech, deviating from Labour’s initial promise not to raise income tax, VAT, or national insurance for working individuals. Despite pressure to reiterate the manifesto pledge, the Chancellor refrained from confirming the commitment.
In light of challenging economic circumstances, the Chancellor acknowledged the need to address the current reality rather than idealized expectations. Meanwhile, the Prime Minister evaded questions on the election vow, prompting concerns about potential deviations.
When questioned about the acceptability of breaking the promise, Powell insisted on adhering to the manifesto, underlining the critical role of political trust in garnering public support for policy decisions.
Powell further advocated for the complete removal of the two-child benefit limit, aligning with former Prime Minister Gordon Brown’s stance on the issue. Stressing the urgency of the matter, she highlighted the detrimental impact of the policy on thousands of children pushed into poverty annually.
Having emerged victorious in the deputy leadership race over Education Secretary Bridget Phillipson, Powell’s campaign centered on advocating for a strategic shift within the party’s direction towards fulfilling its commitments to the electorate.
