{"id":35530,"date":"2025-11-27T08:24:26","date_gmt":"2025-11-27T08:24:26","guid":{"rendered":"https:\/\/naijaglobalnews.org\/?p=35530"},"modified":"2025-11-27T08:24:26","modified_gmt":"2025-11-27T08:24:26","slug":"working-people-would-have-been-better-off-if-reeves-had-broken-manifesto-promise-on-raising-income-tax-thinktank-says-uk-politics-live-politics","status":"publish","type":"post","link":"https:\/\/naijaglobalnews.org\/?p=35530","title":{"rendered":"Working people would have been better off if Reeves had broken manifesto promise on raising income tax, thinktank says \u2013 UK politics live | Politics"},"content":{"rendered":"<p>\n<br \/><span class=\"dcr-90inr0\"><span id=\"key-events-carousel-mobile\"\/><span class=\"dcr-90inr0\"><\/p>\n<p>Key events<\/p>\n<p><\/span><span id=\"filter-toggle-mobile\"\/>Show key events only<\/p>\n<p><span>Please turn on JavaScript to use this feature<\/span><\/p>\n<p><\/span><\/p>\n<h2 class=\"dcr-1wl2b6o\">Reeves says 60% of families who will benefit from abolition of 2-child benefit cap have parents in work<\/h2>\n<p class=\"dcr-130mj7b\"><em>Q: Paul Johnson, who used to run the IFS, said yesterday the tax rises were mostly to fund additional spending. But you are protecting people who do not work, because the benefits bill is goin<\/em>g.<\/p>\n<p class=\"dcr-130mj7b\"><strong>Reeves<\/strong> says 60% of the families that will benefit from the abolition of the two-child benefit cap have parents who are working.<\/p>\n<p class=\"dcr-130mj7b\">And poverty creates problems for children. She says, visiting a hospital yesterday, nurses told her children were going to hospital with respiratory illnesses because they were living in cold homes.<\/p>\n<p>Share<\/p>\n<h2 class=\"dcr-1wl2b6o\">Reeves interviewed on Today programme<\/h2>\n<p class=\"dcr-130mj7b\"><strong>Rachel Reeves<\/strong> is being interviewed on the Today programme.<\/p>\n<p class=\"dcr-130mj7b\"><strong>Nick Robinson<\/strong> is asking the questions.<\/p>\n<p class=\"dcr-130mj7b\">He starts by playing the clip from Reeves\u2019s budget speech last year when she said freezing tax thresholds would breach the manifesto.<\/p>\n<p class=\"dcr-130mj7b\"><em>Q: The OBR said you were \u00a36bn short. But you have raised taxes by \u00a326bn. These are your choices?<\/em><\/p>\n<p class=\"dcr-130mj7b\"><strong>Reeves<\/strong> accepts they are her choices.<\/p>\n<p class=\"dcr-130mj7b\"><em>Q: So it is not the Tories\u2019 fault, or Donald Trump\u2019s fault?<\/em><\/p>\n<p class=\"dcr-130mj7b\"><strong>Reeves<\/strong> says her choices are defined by the context she faces. She says under the Tories there were false assumptions about productivity.<\/p>\n<p class=\"dcr-130mj7b\"><em>Q: You did not tell people the truth about what would be necessary.<\/em><\/p>\n<p class=\"dcr-130mj7b\"><strong>Reeves<\/strong> does not accept this. She says she is asking working people to pay more. But she is keeping their contribution to a minimum. And that will come in from 2028. She says she is also cutting energy bills from next year.<\/p>\n<p class=\"dcr-130mj7b\"><em>Q: During the election every day the thinktanks said the numbers did not add up, and that taxes would have to go up. You denied that. Why won\u2019t you apologise?<\/em><\/p>\n<p class=\"dcr-130mj7b\"><strong>Reeves<\/strong> says she has to operate within the forecasts she has been given.<\/p>\n<p>Share<\/p>\n<h2 class=\"dcr-1wl2b6o\">&#8216;External person&#8217; may have been involved in accidental, early release of OBR&#8217;s budget reports, says its chair<\/h2>\n<p class=\"dcr-130mj7b\"><strong>Richard Hughes<\/strong>, chair of the Office for Budget Responsibility, has said that \u201can external person\u201d may have been involved in the accidental release of its budget report yesterday.<\/p>\n<p class=\"dcr-130mj7b\">In an interview on the Today programme, he said that he had written to the chancellor apologising for the fact that the document became public about 40 minutes before she announced the budget \u2013 allowing people to learn all the details in advance.<\/p>\n<p class=\"dcr-130mj7b\">He also said that that Prof Ciaran Martin, the former head of the UK\u2019s National Cyber Security Centre, will be involved in the OBR\u2019s investigation into what happened.<\/p>\n<p class=\"dcr-130mj7b\">Hughes told Today:<\/p>\n<p>The documents weren\u2019t published on our webpage itself. It appears there was a link that someone was able to access \u2013 an external person.<\/p>\n<p>We need to get to the bottom of what exactly happened. We\u2019re going to do a full investigation. There\u2019ll be a full report to parliament.<\/p>\n<p>We\u2019re going to do that work quickly so people can have assurance in our systems and that can be restored.<\/p>\n<p>Share<\/p>\n<h2 class=\"dcr-1wl2b6o\">Working people would have been better off if Reeves had broken manifesto promise on income tax, thinktank says<\/h2>\n<p class=\"dcr-130mj7b\">Good morning. <strong>Rachel Reeves,<\/strong> the chancellor, has been speaking to broadcasters and defending her budget. It has not been easy because, although it went down relatively well with Labour MPs and the financial markets (no mean feat \u2013 those are two groups whose wishes don\u2019t normally align), it is being hammered by the rightwing papers. Today is the day when the Institute for Fiscal Studies and the Resolution Foundation, the two leading public spending thinktanks, publish their detailed assessments, and they have reservations about some of the budget decisions too.<\/p>\n<p class=\"dcr-130mj7b\">Reeves has been facing questions about breaking Labour\u2019s manifesto promise on tax, which she insists she has not done. But the Resolution Foundation says would be better off if she had broken it. It explains:<\/p>\n<p><em><strong class=\"dcr-in3yi3\">The manifesto tax pledge has cost working people. <\/strong><\/em>Having previously hinted at raising income tax rates, the chancellor chose instead to freeze personal tax thresholds for three more years. But raising all rates by 1p would have been less costly than freezing thresholds for anyone with an income below \u00a335,000. Indeed, all but the top 10% of the income distribution are worse off because of opting for threshold freezes over rate rises (which raise similar amounts of revenue).<\/p>\n<p class=\"dcr-130mj7b\">I will be covering what Reeves has been saying shortly. <strong>Graeme Wearden<\/strong> already has some of her lines on his business live blog.<\/p>\n<p class=\"dcr-130mj7b\">Here is the agenda for the day.<\/p>\n<p class=\"dcr-130mj7b\"><em>9am:<\/em> The Resolution Foundation holds a press conference to discuss its budget analysis.<\/p>\n<p class=\"dcr-130mj7b\"><em>9.30am:<\/em> The ONS publishes net migration figures for the year end June 2025. And, separately, the Home Office publishes asylum figures for the year ending September 2025.<\/p>\n<p class=\"dcr-130mj7b\"><em>10.30am:<\/em> The Institute for Fiscal Studies holds its post-budget briefing.<\/p>\n<p class=\"dcr-130mj7b\"><em>11.30am:<\/em> Downing Street holds a lobby briefing.<\/p>\n<p class=\"dcr-130mj7b\"><em>Morning:<\/em> Keir Starmer is on a visit in Warwickshire. In the afternoon he is visiting a synagogue in London.<\/p>\n<p class=\"dcr-130mj7b\">If you want to contact me, please post a message below the line when comments are open (normally between 10am and 3pm at the moment), or message me on social media. I can\u2019t read all the messages BTL, but if you put \u201cAndrew\u201d in a message aimed at me, I am more likely to see it because I search for posts containing that word.<\/p>\n<p class=\"dcr-130mj7b\">If you want to flag something up urgently, it is best to use social media. You can reach me on Bluesky at @andrewsparrowgdn.bsky.social. The Guardian has given up posting from its official accounts on X, but individual Guardian journalists are there, I still have my account, and if you message me there at @AndrewSparrow, I will see it and respond if necessary.<\/p>\n<p class=\"dcr-130mj7b\">I find it very helpful when readers point out mistakes, even minor typos. No error is too small to correct. And I find your questions very interesting too. I can\u2019t promise to reply to them all, but I will try to reply to as many as I can, either BTL or sometimes in the blog.<\/p>\n<p>Share<\/p>\n<p>Updated at\u00a003.12 EST<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key events Show key events only Please turn on JavaScript to use this feature Reeves says 60% of families who will benefit from abolition of 2-child benefit cap have parents in work Q: Paul Johnson, who used to run the IFS, said yesterday the tax rises were mostly to fund additional spending. But you are<\/p>\n","protected":false},"author":1,"featured_media":35531,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48],"tags":[2380,5607,132,9040,364,124,8847,2796,2656,101,7939,5215],"class_list":{"0":"post-35530","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-politics","8":"tag-broken","9":"tag-income","10":"tag-live","11":"tag-manifesto","12":"tag-people","13":"tag-politics","14":"tag-promise","15":"tag-raising","16":"tag-reeves","17":"tag-tax","18":"tag-thinktank","19":"tag-working"},"_links":{"self":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/35530","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=35530"}],"version-history":[{"count":0,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/35530\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/media\/35531"}],"wp:attachment":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=35530"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=35530"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=35530"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}