Labour’s Rachel Reeves has hinted that fulfilling the party’s tax promises from the manifesto may necessitate significant spending cuts. This signals a potential deviation from the pledge not to increase income tax, VAT, or national insurance. Reeves also suggested that the upcoming Budget on November 26 could see the elimination of the two-child benefit limit to alleviate child poverty.
Despite these statements, Chancellor has maintained that no definitive decisions on tax and spending have been made. Reeves emphasized the need to address child poverty and criticized policies penalizing children in larger families. She highlighted the importance of making informed choices to enhance economic stability and growth.
Regarding the two-child benefit limit, discussions have revolved around potential revisions rather than complete abolition. The Chancellor acknowledged the diverse circumstances that lead to larger families and stressed the importance of not penalizing children in such situations.
The commitment to tackle child poverty was reiterated, drawing parallels with past Labour initiatives aimed at reducing child poverty levels. The government’s approach to addressing these issues remains under scrutiny as public expectations for action on child poverty persist.