Rachel Reeves has pledged to implement specific measures in the upcoming Budget to assist families facing financial challenges. The Chancellor is exploring options such as reducing the 5% VAT rate on energy bills and potentially cutting green levies to alleviate the burden on consumers. Addressing concerns over the cost of living, the Treasury aims to ease the financial strain on individuals.
During a speech at the International Monetary Fund (IMF), the Chancellor emphasized the need for targeted interventions to address the rising cost of living. Reeves hinted at the possibility of imposing higher taxes on the affluent as part of the Budget announcement on November 27, emphasizing the importance of equitable tax contributions.
Responding to criticism following previous budget decisions, Reeves dismissed claims of negative consequences and emphasized the resilience of the country. Despite challenges in public finances, the government remains committed to its pledge not to increase VAT, income tax, or national insurance, as reiterated by No 10. The Prime Minister’s office echoed the Chancellor’s acknowledgment of the need for wealthier individuals to contribute more while focusing on strategies that promote economic growth in the upcoming Budget.