Labour Conference LIVE: Rachel Reeves fails to rule out breaking manifesto pledge not to raise taxes in Budget

Sep 29, 2025 - 09:03
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Labour Conference LIVE: Rachel Reeves fails to rule out breaking manifesto pledge not to raise taxes in Budget

Rachel Reeves said the Labour Party’s manifesto commitments “stand” on whether the Government will raise VAT at the Budget later this year, but did not explicitly rule it out.

Ahead of the election last year, Sir Keir Starmer and Ms Reeves promised not to raise taxes on “working people”.

However, there is speculation the Government is considering a tax rise later this year to bring in money.

When asked directly by Times Radio whether she had any plans to increase VAT, the Chancellor said: “I am being clear. We made those commitments in the manifesto, and those manifesto commitments stand.

“We went through all of this in the general election 15 months ago where people said ‘are you going to rule this out? Are you going to do this?’

“We made those commitments in the manifesto. We were elected on those manifesto commitments, and those manifesto commitments stand because I want to make working people better off.

“Judge me on my record, because last year at the budget people said, ‘Oh you’re not going to be able to honour your manifesto commitments’, well we did increase taxes in the budget last year, but without hitting the payslips of ordinary working people.”

It comes as the Prime Minister also failed to rule out whether the Government will break the promise over fresh fears Labour will have to find £30billion at then Budget.

Ms Reeves is awaiting the first official forecasts from the budget watchdog on the state of the economy which the Treasury is expected to receive later this week.

The Office for Budget Responsibility (OBR) is set to warn Ms Reeves that she will have to find about £30billion in further revenues or savings as a result of higher borrowing costs, as well as policy U-turns and forecasted future economic growth.

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