CHANCELLOR Rachel Reeves has admitted her £25billion Budget tax raid will not be easy for businesses to absorb.
She also said charities and local councils will suffer under her National Insurance Contributions increase.
It came as she refused to repeat in the Commons yesterday a promise she made at a CBI speech not to raise taxes again in this Parliament.
Speaking to the Yorkshire Post, she acknowledged that the upcoming national insurance increase will pose challenges for businesses, charities, and local authorities to manage.
During the general election, a promise was made to avoid raising taxes for working individuals, who have been shouldering the burden of tax hikes in recent years.
To uphold this commitment, taxes such as income tax, VAT, and national insurance for employees will remain unchanged, while fuel duty will also be frozen for another year.
“That has meant we have had to increase taxes, particularly national insurance, but also some of the taxes on the wealthiest in society.”
Shadow Treasury Minister Richard Fuller last night said: “Rachel Reeves is again undermining business confidence.
“She told the CBI last week ‘there would be no more borrowing, and no more taxes’.
“Days later the Business Secretary and then the Prime Minister refused to stand by what she said. Now even she cannot repeat her own words.
“How can businesses be expected to create jobs, growth and wealth in the economy when the government offers neither stability or credibility?”
