Rachel Reeves Sparks Outrage as She Refuses to Rule Out More Tax Hikes After Harsh Budget Shake-Up

Chancellor Rachel Reeves has said she cannot guarantee that taxes won’t go up again this year. This means households and businesses might have to pay even more in taxes soon. While speaking in Oxford, she did not deny that new tax increases and budget cuts could be included in the government’s next budget announcement in the spring. 

This news comes after many business owners were upset about her decision to raise National Insurance in October. When asked directly if the Labour government could promise that businesses won’t face more tax hikes, she refused to give a clear answer.

Instead, she said that it wouldn’t be possible to plan out five years’ worth of budgets in just six months. She added that her main focus is to improve living standards for working people, and she hopes they will see and feel these benefits by the time the current Parliament term ends. 

During her speech, she shared her ideas to help the UK economy grow. Some of her plans include expanding Heathrow Airport by building a third runway and developing a “British Silicon Valley” to support the technology industry. She believes these projects will create new opportunities for businesses and workers. 

However, some experts are concerned about the uncertainty surrounding future tax increases. Aman Parmar, who works in marketing for a company that provides office spaces, said that many small business owners and startups are likely feeling nervous.

He explained that higher costs for employers, rising utility bills, and increasing rents have already forced many businesses to cut staff or even close down completely.

He also pointed out that the government’s decision to reduce business rate relief is another big issue for businesses in the hospitality, retail, and leisure industries. He criticized Rachel Reeves for not offering any short-term solutions to help small businesses, even though she spoke a lot about supporting local communities. 

Rachel Reeves also talked about why she believes expanding Heathrow Airport is important. She said that the airport’s growth has been limited for decades and that expanding it is badly needed.

Heathrow’s third runway was actually approved by Parliament in 2018, but legal challenges and the COVID-19 pandemic have delayed the project. Even though she supports the expansion, not everyone agrees with her. Many Labour MPs, London Mayor Sadiq Khan, and environmental activists strongly oppose the project because they believe it will harm the UK’s efforts to fight climate change. 

She argued that Heathrow plays a key role in connecting the UK with markets all over the world and that expanding it will help businesses grow. However, Ryanair CEO Michael O’Leary strongly disagrees with her. In an interview with Sky News, he said she doesn’t understand business at all.

He criticized her for increasing National Insurance and air travel taxes, saying these decisions hurt job growth and tourism. He also said that talking about a third runway is just a distraction because, in reality, it may not be built for another 15 to 25 years. He believes she has no real plan for economic growth and is just trying to make it seem like she is doing something. 

Rachel Reeves insists that the third runway will help the UK’s economy in the long run. She said it could increase economic growth by 0.4% by 2050 and create around 100,000 new jobs. She also announced other major investment plans, including a project to develop the Oxford-Cambridge corridor, which she says could boost the UK economy by £78 billion by 2035.

Additionally, she talked about plans to redevelop the area around Manchester United’s Old Trafford stadium and to work with private companies to build the Lower Thames Crossing. 

Not everyone is convinced that these plans will actually help people in the short term. Darwin Friend, who works for the TaxPayers’ Alliance, said that while it’s important to invest in infrastructure, people are skeptical about politicians making big promises.

He said that even if these projects do move forward, it doesn’t change the fact that the government has already raised taxes, making life harder for businesses and families. He believes that if Rachel Reeves really wants to boost economic growth, she should start by reversing some of the recent tax increases. 

Many businesses are already struggling because of the government’s tax policies. Big companies like Sainsbury’s, Tesco, and Lloyds Banking Group have all announced major job cuts since Labour introduced new tax increases. In October, Rachel Reeves announced that employer National Insurance would go up from 13.8% to 15% starting in April, which will cost businesses an extra £25 billion. 

Shadow Business Secretary Andrew Griffith criticized Labour’s decisions, saying that while it’s good to plan for long-term investments, businesses and workers need help right now. He warned that instead of making the UK a better place for business, Labour’s tax policies might actually push more companies to leave the country. He even joked that if businesses keep shutting down, Heathrow’s new runway might only be useful for companies flying out of the UK for good. 

On top of all this, there has been some controversy over whether Rachel Reeves should publish her tax return. At first, she said she had no plans to do so, but after some pressure, the Treasury confirmed that she will release details about her taxes, just like the Prime Minister. In 2024, Labour leader Keir Starmer revealed that he had paid nearly £100,000 in taxes after selling property. The government has also confirmed that Rishi Sunak and former Chancellor Jeremy Hunt released their tax details when they were in office. 

People are paying close attention to how Rachel Reeves handles these issues. Many are waiting to see if the government will introduce more tax increases and whether the big projects she announced will actually happen. In the meantime, businesses and workers are left wondering how these policies will affect their jobs, incomes, and future.