Rachel Reeves admits £25bn Budget tax raid will not be easy for businesses to absorb

CHANCELLOR Businesses will find it difficult to absorb Rachel Reeves’ 25 billion budget tax raid.

She added that her hike in national insurance contributions would hurt local governments and charities.

It happened yesterday when she declined to reiterate in the Commons her pledge to refrain from tax increases in this Parliament, which she had stated during a CBI speech.

“I am not going to pretend that it will be easy for businesses, or even for charities or local authorities, to absorb, especially the national insurance increase,” she told the Yorkshire Post.

For a reason, however, we said at the general election that we would not raise taxes on working people, as it has been working people who have been disproportionately affected by tax rises in recent years.

We therefore promised not to raise employee income tax, VAT, or national insurance, and we have been able to fulfill that pledge in our manifesto. We have also been able to keep the fuel duty frozen for another year.

As a result, we had to raise some taxes on the wealthiest members of society as well as national insurance in particular.

Richard Fuller, the shadow treasury minister, stated yesterday night that Rachel Reevesis is once more eroding corporate confidence.

Last Monday, she informed the CBI that there would be no more borrowing or taxes.

A few days later, the Prime Minister and the Business Secretary both declined to support her statements. Even she is now unable to repeat what she has spoken.

When the government provides neither stability nor credibility, how can businesses be expected to generate wealth, growth, and jobs in the economy?