RACHEL Reeves is looking to put more cash in people’s pockets with tax cuts when economic conditions allow, The Sun understands.
has told colleagues she ideally wants to start cutting taxes before the next election providing a sweetener to voters.
Rachel Reeves is planning tax cuts to put more cash in people’s pockets before the next election, sources sayCredit: PA
Shadow Business Secretary Andrew Griffith has blasted Labour, saying rising tax and regulation risks cutting jobs and hurting familiesCredit: PA
The potential move comes after she last year asked ordinary people to pay a little bit more to plug the nation’s finances at the Budget.
Both Sir and the Chancellor have also put the as their number one priority.
Options available could include a reduction to income tax or national insurance or even unfreezing the tax thresholds to stop people being dragged into paying more tax.
The revelation comes as she delivers a no-frills outlining the latest growth forecasts from the independent watchdog.
The latest estimates on unemployment, , government spending and tax revenues for the coming years will be unveiled.
But the Treasury has also received a welcome boost in recent weeks with a rosier level of tax receipts last month and a fall in government borrowing.
But her statement to MPs will be against the backdrop of fragile confidence.
Firms across the private sector are expecting activity to drop in the next three months, according to the CBI’s latest growth indicator.
But the figures show the pessimism has eased with expectations at their least negative since November 2024.
Charlotte Dendy, of the CBI, said: “Expectations remain well below their long-run average, underscoring the fact that firms continue to face a challenging trading environment.”
Latest figures from the Institute of Directors shows business leader optimism over prospects for the economy has dropped back from -48 in January to -63 this month.
Expectations over revenue, headcount and exports all fell back from January.
Shadow Business Secretary said: “Month after month, business leaders are sounding the alarm over the growing burden of tax and government regulation.
“This government of leftists and lawyers has no experience of business or how to grow our economy.
“Falling business confidence means are cut, high streets hollowed out and families have less at the end of the month.
Eze Chidiebere Paul
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