The chancellor has said she will not raise taxes to “top up” public spending, after facing pressure to spell out her future tax plans. Rachel Reeves made headlines last week by telling a business conference she would not be “coming back” with tax hikes in the coming years. She declined to repeat the promise earlier when challenged to do so by MPs, but has now told reporters “another load of tax rises” will not happen. The Conservatives have accused her of “undermining business confidence” and lacking a stable message for firms. From next April, employers will have to pay National Insurance at 15% on salaries above £5,000, instead of 13.8% on salaries above £9,100 currently. Ministers have argued the hike is a tough but necessary decision required to fund public services and fix a “hole” in public spending plans they inherited from the Conservatives. But it has led to a political row, with opposition parties arguing it will dent future economic growth and make companies less likely to hire workers. She suggested further rises would not be required because Labour’s Budget would “put our public finances back on a firm footing”. She added, “Public services now need to live within their means because I’m really clear, I’m not coming back with more borrowing or more taxes”. She told business leaders she wanted to raise extra revenue “all at once” to give firms confidence she would not have to “come back for more” in future years. But Business Secretary Jonthan Reynolds gave a less specific commitment that only “comparable” business tax rises would not be repeated, when asked by MPs. At a regular scrutiny session in the Commons, her first appearance in Parliament since her CBI comments, Conservative MPs pushed her to repeat her pledge not to raise taxes. She declined to repeat the specific pledge, and the Conservatives accused her of being unable to “repeat her own words” and “undermining business confidence”.
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