Rachel Reeves plotting ‘biggest tax raid in history’, warns Andrew Neil | Personal Finance | Finance
Veteran broadcaster Andrew Neil has issued a stark warning to the British public, predicting the “biggest tax raid in history” under the current Labour Government.
In a scathing column for the Mail Online, Mr Neil claims that Chancellor Rachel Reeves is preparing to unleash an unprecedented tax hike in her upcoming Budget.
Mr Neil highlighted Labour’s shift from its pre-election promises, where they assured voters that tax increases on working people would be minimal.
Instead, he argues, Britons are now facing a series of steep rises. He wrote: “In under two weeks, we will be landed, in cash terms, with the biggest tax raid in history – to be piled mercilessly on top of what is already the highest tax burden for 70 years.”
Among the most concerning measures, Mr Neil points to a likely £12billion increase in National Insurance contributions (NICs), which he says will primarily affect working people.
He said: “Reeves is slavering over a £12billion increase, probably the biggest single tax rise in her upcoming Budget. That is another tax on working people.”
Mr Neil also criticised Labour’s broader economic strategy, suggesting that new taxes will be stacked on top of already record-high taxation, with little promise of meaningful economic growth.
He said: “New taxes will be piled on existing record taxation. Public spending is close to record highs, at 45 percent of our GDP. But we’re going to spend yet more.”
The broadcaster accused Labour of breaking its campaign promises and adopting a “borrow, tax and spend” approach, despite earlier pledges to be financially responsible.
He argued that around 40 percent of the alleged £22billion fiscal hole was created by public sector pay rises implemented by the Chancellor just weeks after Labour took office.
Since then, the size of the fiscal gap identified has grown, with the Chancellor now expected to announce up to £40billion in tax hikes.
Ms Reeves stated that filling the larger gap would protect key departments from real-term cuts and strengthen the economy, while the initial £22billion would only have been enough to “keep public services standing still.”
Ms Reeves will unveil the new Government’s Autumn Budget on Wednesday, October 30.
