LONDON — British Treasury chief Rachel Reeves told lawmakers Wednesday that taxes will rise by 40 billion pounds in order to plug a hole in the public finances and investment projects to boost growth.
The budget could set the tone for the length of the current parliament, which runs until 2029, and the party's ability to win a second term at the next election.She pledged to put “more pounds in people’s pockets,” give a much-needed financial boost to public services, such as schools and hospitals, and get the economy growing.
Reeves argued that higher taxes and limited public spending increases are needed to “fix the foundations” of an economy that it argues has been undermined by 14 years of Conservative government. Labour has pledged not to raise the tax burden on “working people,” a term whose definition has been hotly debated in the media for weeks. The Treasury has announced that about 3 million of the lowest-paid workers will get a 6.7% pay increase next year, with the minimum wage rising to 12.21 pounds an hour.