Tax rises ‘less necessary’ following Budget changes, says Reeves

Chancellor Rachel Reeves has not ruled out further tax rises, but said they are “less necessary” following her November Budget.

Ms Reeves increased taxes by £26 billion in November’s Budget, including freezing thresholds on income tax.

In an interview with The i Paper, she said the moves had provided the Government with cover for problems arising in an “incredibly volatile” world.

She said: “What I did do in the Budget a couple of weeks ago was increase the fiscal headroom that the Government has, more than doubled that, which means that when further disruption and shocks come our way – we’re better able to withstand those sorts of shocks, which will mean further changes to taxes are less necessary.”

She refused to make predictions on future moves because “it would be wrong to start writing future Budgets just a couple of weeks after the last Budget”.

Ms Reeves identified helping people get on the housing ladder by keeping interest rates low as a key issue.

“There has been a decline in home ownership over the last 10 or 15 years,” she said.

“I want to move in the other direction and find more people being able to get a mortgage and get on the housing ladder, because I know that that is the aspiration for so many people.”

She backed proposals for more flexible mortgages being considered by the Financial Conduct Authority, which would allow people to “borrow more and also borrow a bigger multiple of what your income is”.