Labour’s Rachel Reeves has hinted that adhering to the party’s tax pledges from their manifesto would necessitate substantial spending cuts. This signals a potential departure from the commitment not to increase income tax, VAT, or national insurance. Reeves also suggested that the government might eliminate the controversial two-child benefit restriction at the upcoming Budget on November 26 to alleviate child poverty.
Reeves criticized penalizing children for being part of larger families, emphasizing the need to address child poverty. While the Chancellor has not finalized decisions on tax and spending, Reeves highlighted the trade-offs involved, suggesting that maintaining manifesto commitments could require deep cuts in capital spending.
Regarding the two-child benefit limit, discussions have surfaced about potentially revising the policy rather than scrapping it entirely. The Chancellor defended the policy by acknowledging the varied reasons families may have more children, emphasizing the importance of not penalizing children for circumstances beyond their control.
Reeves reiterated her commitment to economic stability and making decisions in the country’s best interests. She emphasized the need to combat child poverty, drawing parallels to previous Labour efforts in reducing this issue.
