Minister Defends Tax Hikes Amid Business Backlash: 'The Alternative Was More Austerity'

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Budget News

Jess Phillips,Tax,CBI

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"I wouldn't want anyone, any business, to feel like they couldn't be investing in their staff, but the alternative was more austerity."business leaders on Monday that these measures are undermining Labour’s attempts to get people back into work, as employers will be more reluctant to “take a chance” on new hires.“So if we want investment into our NHS, that gets Britain working, that stops the millions of people who are currently out of work, that takes investment.

The MP for Birmingham Yardley continued: “But the alternative was more austerity and I’m telling you now that services in Birmingham couldn’t have taken any more austerity and it would have made our city, our country, sicker.”Phillips replied: “Look, I mean, I think we will have to wait and see. “We are also investing hundreds of millions into new jobs. So I think the difficult decisions have to be made, and time is going to have to tell how that plays out but we are investing in growth in this country.Reeves is expected to tell businesses on Monday that they have offered “no alternatives” to her plans.

She will say: “We have asked businesses and the wealthiest to contribute more. I know those choices will have an impact. But I stand by those choices as the right choices for our country: investment to fix the NHS and rebuild Britain, while ensuring working people don’t face higher taxes in their payslips.”

Labour raised taxes by £40bn in the Budget in a bid to close the £22bn black hole the party claims the Tories left behind in the public finances, and to boost public services.Exclusive: Voters' Trust In Labour To Run The Economy Plummets Amid Budget Backlash

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CBI Warns Labour's Budget Tax Hikes Will Damage Growth, Investment, and JobsThe Confederation of British Industry (CBI) is set to warn that Labour's budget tax increases will negatively impact economic growth, investment, and job creation. CBI chief executive Rain Newton-Smith will argue that the £25 billion National Insurance rise undermines the chancellor's goal of boosting the economy and has forced businesses, particularly in retail and hospitality, into 'crisis containment'.
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