Rachel Reeves is “fighting for her political survival” as she plots to raise taxes on millions of workers, a group of Labour MPs claim.
A rising number of backbenchers have slammed the chancellor, saying she’s “running out of road” and her Budget will “go down like a bucket of sick”.
And they reckon she’ll be “lucky to be here by Christmas ”.
It comes after the under-fire chancellor last week admitted she planned to hike income tax in her crunch Budget on November 26.
Labour MP Clive Lewis fumed: “She is a Chancellor without a long-term economic strategy, who is trying to please as many people as possible and fighting for [her] political survival. This does not inspire confidence.”
Graham Stringer, one of Labour’s longest-serving MPs, said: “I personally can’t see how any Chancellor can stay on if they break a pledge that was fundamental to the Labour Party’s commitment to the public.”
A cabinet minister insisted “promises matter” but declined to say whether she agreed with Labour’s deputy leader that the Government should stick to its pledges on tax.
Culture Secretary Lisa Nandy warned that “difficult decisions” were required as she faced questions about her former Cabinet colleague Lucy Powell’s call for the party’s manifesto commitments to be honoured.
Labour promised during the general election last year not to raise income tax, VAT or national insurance.
Asked whether she agreed with Ms Powell, the former Commons Leader, Ms Nandy said on Sunday (November 9): “Look, we take our promises very, very seriously and we did make specific commitments around tax in the manifesto.
“But we were also elected on a promise to change this country, and through the record investment that we’ve been able to put into the National Health Service, we’re seeing waiting times coming down and more appointments being made available on a whole range of measures.
“We’re delivering the change that people want to see. We are going to have to make difficult decisions. I’m not going to write the Budget live on air.”
Ms Powell suggested breaking the pledge not to raise income tax, national insurance or VAT would damage “trust in politics”.
A Treasury spokesman said they don’t comment on speculation.
Meanwhile, it has emerged motorists face being taxed twice if they drive in France under the Chancellor’s new pay-per-mile scheme. Ms Reeves is due to announce a new 3p tariff in this month’s budget for EV vehicles, to be introduced in 2028, but drivers holidaying in Europe will continue to pay the levy even if they’re not using UK roads. Hybrid vehicles will also be liable but at a lower rate. This means drivers would be charged twice if travelling in France and would have to pay the UK tariff in addition to tolls that are commonplace on France’s motorways. Paul Barker, of the magazine Auto Express, said: “It wouldn’t be reasonable to charge drivers for mileage clocked up abroad when they’re not using UK roads.”
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