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The chancellor has said the government will likely raise some taxes in October’s Budget after months of speculation about Labour’s stance on tax.<\/p>\n
“I think we will have to increase taxes in the Budget,” Rachel Reeves told the News Agents podcast.<\/p>\n
She was responding to a question about raising money following her claim on Monday that the previous government left a \u00a322bn “hole” in the public finances. <\/p>\n
Labour said repeatedly during the election campaign there would be no tax rises on “working people”, but the Conservatives had insisted Labour would increase them.<\/p>\n<\/div>\n
Speaking on the podcast, the chancellor was pushed on which taxes the government would raise.<\/p>\n
The government has already announced details<\/a> of how it will add value added tax (VAT) to private school fees at the standard rate of 20% to fund 6,500 new teachers in England.<\/p>\n On Tuesday, Ms Reeves repeated the Labour manifesto commitment of no VAT, national insurance, or income tax increases, but did not rule out inheritance tax, capital gains tax, or pension reform.<\/p>\n “I’m not going to write a Budget or start to write a Budget on this podcast,” she said, adding that Labour wants to stick to “sensible” rules aimed at bringing the government’s longer-term debts down.<\/p>\n Ms Reeves’ comment comes after she scrapped a number of infrastructure projects, and announced the winter fuel allowance for pensions would be means-tested, as part of a series of measures aimed at addressing a shortfall in the public finances.<\/p>\n<\/div>\n Labour and the Conservatives have been locked in a row over who is to blame for the lack of money in the public purse.<\/p>\n