LONDON - Rachel Reeves was plotting another tax raid on the middle classes last night – despite warnings she needs to cut State spending to stop the economy ‘spiralling out of control’.
Shock figures showed that families and businesses are paying record amounts of tax after the Chancellor’s first year in office.
They also revealed that even this is not enough to cover the cost of Labour’s vast expansion of the State, pushing government borrowing to a record high outside of the pandemic, with the national debt hitting £2.9 trillion.
Last night, it emerged that the Chancellor is considering a £2 billion raid on middle-class professionals such as lawyers, accountants and family doctors, as she scrambles to balance the books in next month’s budget.
With inflation figures this morning expected to bring more gloom, Ms Reeves yesterday conceded that the economy is ‘not working as it should’ but attempted to blame Brexit.
Business Secretary Peter Kyle defended Labour’s spending splurge, saying: ‘‘We are doing what it takes to invest our way out of the challenge we inherited from the Tory government.’’
However, Tory leader Kemi Badenoch said borrowing figures showed the economy was ‘spiralling out of control’, while Shadow Chancellor Sir Mel Stride added: “If Rachel Reeves had a plan – or a backbone – she would stand up to her backbenchers, get spending under control and cut the deficit.”
Rachel Reeves was plotting another tax raid on the middle classes last night - despite warnings she needs to cut State spending to stop the economy ‘spiralling out of control’. (Pic: Reuters)