An old video of Rachel Reeves attacking the Conservative Party for raising National Insurance has re-emerged, and it’s causing the Chancellor some embarrassment.
Both Reeves and Prime Minister Keir Starmer have refused to rule out an increase in the National Insurance (NI) rate for employers in the upcoming Budget. However, this unearthed clip shows Reeves, then shadow chancellor, harshly criticising the same move just two years ago.
In a 2021 speech in the House of Commons, she said:
“It is worrying that at this crucial time, the Prime Minister and Chancellor have created a new jobs tax. Despite their promises to cut National Insurance, they’re raising it against the advice of business and trade unions.”
She added:
“The Conservatives are making new hires more expensive and increasing costs for businesses. Their decision to introduce this tax when our economic recovery is fragile only adds pressure to companies already struggling after a tough year and a half.”
Labour’s election manifesto promised not to raise taxes for workers, which included not increasing NI rates, income tax, or VAT. However, speaking on Monday, Reeves insisted that increasing the employers’ rate of NI would not break that pledge.
She said:
“We need to balance government spending with what we bring in from taxes. But we will stick to our manifesto commitments, including that one.”
When asked whether raising the NI rate would violate their campaign promises, Prime Minister Keir Starmer said:
“Our manifesto made it clear that we won’t raise taxes on working people. We intend to keep that promise.”
Meanwhile, Reeves dropped a strong hint that taxes could rise in the October 30 Budget. During a cabinet meeting, she warned that tough decisions on spending, welfare, and taxes would need to be made.
A Labour spokesperson stated:
“The Chancellor told the cabinet that the Budget will focus on putting public finances on a strong footing. She was honest about the challenges ahead.”
You can watch the clip below:
https://x.com/christiancalgie/status/1846147176574943458?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1846147176574943458%7Ctwgr%5E22656632bee9678504b0260684a64294916496e6%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.huffingtonpost.co.uk%2Fentry%2Funearthed-video-of-reeves-criticising-tax-hike-resurfaces_uk_670e7e5de4b094567cfe4fb9You may also like: Health secretary: no appetite for Brexit deal re-negotiation despite economic consequences
