Chancellor Rachel Reeves has urged Labour MPs to unite behind her make-or-break Budget, warning that politics is a "team sport" as she faces mounting pressure from within her party and falling poll ratings.
Speaking to the Parliamentary Labour Party on Monday night, Reeves insisted the Budget was not a "pick 'n' mix" where MPs could choose what they liked. She told backbenchers they might not like every measure, but the package delivered on Labour values. "You can't say I like the cola bottles but not the fruit salad," she said.
The intervention comes as Labour's opinion poll ratings have dropped significantly and backbenchers grow increasingly frustrated about planned tax hikes. Reeves outlined three Budget priorities: "Cutting the cost of living, cutting NHS waiting lists and cutting the cost of debt."
Economic headwinds force tax hikes
The Office for Budget Responsibility is expected to downgrade its economic growth forecast for 2026 and every year until the 2029 election. The downgrade will reduce tax revenues, forcing Reeves to increase taxes to fill what she has called a "black hole" in public finances.
The Chancellor needs to raise an estimated £20-30 billion while building a larger buffer against future economic shocks. Potential measures include a levy on more than 100,000 properties worth over £2 million, which could raise £400-450 million. Around 2.4 million properties in the top three council tax bands would be revalued.
Reeves is also widely expected to extend the freeze on income tax thresholds, potentially dragging around 1.75 million people into paying more tax.
Criticism from multiple fronts
Business leaders have warned against imposing what Rain Newton-Smith, head of the Confederation of British Industry, called "death by a thousand taxes" on firms. Speaking at the CBI's conference on Monday, she urged the government to "change course" and make tough decisions on welfare spending instead.
Paul Johnson, former head of the Institute for Fiscal Studies, told The i Paper that a poorly implemented property levy could cause "a whole world of trouble" with appeals over valuations. He called it "better than doing nothing" but warned the system needed proper reform.
Disability campaigners branded Reeves "deluded" over her plan to extend benefit fraud crackdowns to raise £1.2 billion by March 2031. Linda Burnip of Disabled People Against Cuts told the Morning Star that PIP benefit fraud rates have "never been more than 0.5 per cent and more recently have been zero."
Political stakes rise
Scottish Labour leader Anas Sarwar warned in an exclusive article for The Independent that the Budget must restore public and business trust. He wrote that trust is "vital in politics" and has been "stretched thin" in recent years.
A Treasury spokesman defended Reeves' call for unity, saying: "Because united parties are the ones who win elections." The spokesman denied suggestions of Budget surprises, stating the era of "rabbits out of a hat" is "over."
Reeves herself struck a defiant tone, telling MPs: "I'll show the media, I'll show the Tories, I will not let them beat me, I'll be there on Wednesday, I'll be there next year and I'll be back the year after that." She concluded by promising: "On Wednesday, this will be a fair Budget. It will be a Budget that delivers strong foundations, secures our future and delivers on our promise of change."
Note: This article was created with Artificial Intelligence (AI).
