The Chancellor’s former senior adviser has instructed Rachel Reeves to make a U-turn to stop taxing working people.
Jim O’Neill, a former Treasury minister told Reeves the government “can’t commit” to their priorities and not raise taxes after the Chancellor had said she will not raise income taxes, VAT, corporation tax and National Insurance.
O’Neill said, “Without changing some of the big taxes, welfare and pensions, they [Labour] can’t commit to things like Northern Powerhouse Rail, small modular nuclear reactors, and various other things that will make an investment and growth difference.”
Speaking to the Independent Lord O-Neill said that Labour has “to stop worrying” about Reform UK as they have “four years before that should matter.”
This comes after a poll by Electoral Calculous shows Nigel Farage’s party is now on 24.9% of the vote, Labour stands at 22.9% and the Tories are at 18.2%.
O’Neill added: “The past few days should force Government to truly prioritise, link specific priorities to their growth mission, get out of the 24/7 social media, and, crucially, recognise it can’t deliver on all three of its fiscal rules, growth mission and manifesto tax commitments.
“Something has to give.”
