Tory tax ‘insult’
» Cut? Families will be £870 worse off » Reeves plans to grow the economy
RACHEL Reeves has accused outof-touch Rishi Sunak and Jeremy Hunt of treating families like fools with a Tory “tax con”.
It comes after the Prime Minister and Chancellor boasted of a 2p cut to National Insurance, which comes into force today as the new tax year starts.
But Labour’s Shadow Chancellor yesterday said that due to council tax hikes and Tory stealth taxes – a “double tax whammy” – the average family will instead be £870 worse off.
Ms Reeves told the Mirror: “For every £5 the Government has given in tax cuts, they are taking £10 from people with tax increases. That’s not a tax cut – it’s a tax hike. It’s a tax con. If you listen to the PM and Chancellor you’d think taxes are coming down and that their plan is working.
“Things might look all right 10,000 feet up in your helicopter but... people are really struggling still.”
Ms Reeves added: “The British people are not fools and Jeremy Hunt and Rishi Sunak take them for fools.
“They see their payslips and bank balances. They know mortgages and rents are still going up. The fact they are claiming things are all better now shows how out of touch this Conservative Government have become.”
Ms Reeves, in Blackpool South ahead of next month’s by-election to support candidate Chris Webb, also unveiled Labour’s latest advert highlighting the increase in council tax and frozen income tax thresholds.
Pressed on how Labour would turn around the situation, she said: “It’s only through growing the economy that we can improve living standards.
“The reason the tax burden is at a 70-year high is that the Tories have had no real plan to grow the economy and create good jobs. It’s why they’re pickpocketing working people.”
Asked whether Labour would end the freeze on income tax thresholds, she replied: “I want taxes on working people to be lower. But I’m not going to make any unfunded commitments.
“Look at what [Kwasi] Kwarteng did and that crashed the economy.”
The former economist at the Bank of England is “under no illusion” about the scale of the challenge she would face if Labour wins the next election.
Ms Reeves said: “It will be the worst economic inheritance any Chancellor has faced since the war. But I will always behave in a responsible way and make sure my sums add up.”