Will the Thatcher Beat of Tax Power Move Again?
Cabinet minister Pat McFadden takes a stand on the looming question that’s got everyone watching: Are we headed toward a tax hike? He’s signed‑off on keeping the tax promises that Labour championed during last year’s election, but admitted the silver lining is a bit cloudy.
McFadden’s Take
- “I’m not going to speculate on the budget.” – the man himself, speaking to BBC Breakfast.
- He promises to “keep to the tax promises” they pledged, but says a full brain‑wave about the budget is impossible right now because “there are so many moving parts.”
Why the “Moving Parts” Matter
Labour’s latest reforms saw a sudden back‑track on welfare, leaving the Prime Minister’s pledge in a hesitant half‑space. This shuffle has opened the door for potential tax adjustments as the government recalibrates growth gears.
In the Fiscal Analyst’s Corner
Helen Miller, the incoming director of the Institute for Fiscal Studies, warns that with departmental spending already set in motion, a tax rise is becoming more likely. Her comments hint that the talk of which taxes might climb will only heat up.
Stealing the Spotlight
- “Since departmental spending plans are now effectively locked in, and the Government has already had to row back on planned cuts to pensioner benefits and working‑age benefits, tax rises would look increasingly likely.” – Helen Miller
- Expect a spotlight on the summer, especially on which taxes might go up and by how much.
Shadow Capitalist Mel Stride’s (and Rachel’s?) Warning
Sir Mel Stride, Labour’s shadow chancellor, spins a narrative around “mismanagement” and “a weak Prime Minister.” He paints a picture of hard‑working families sweating over the summer while waiting for Rachel Reeves to “claw back” the money.
In short, the political juggle is still on: promises, back‑tracks, fiscal pressures, and a looming question mark over the next tax decade. Stay alert – the cut that surprises you might not be the tax you’re worried about.
