UK Chancellor Rachel Reeves Maintains Labour's No VAT Rise Pledge Amid Budget Pressure

UK Chancellor Rachel Reeves is facing increasing pressure regarding the possibility of raising VAT as part of the government's strategy to address Britain's public finance deficits. While she emphasizes that Labour's manifesto commitments not to increase taxes on working people, including VAT, National Insurance, and income tax, still stand, she has not explicitly ruled out a VAT rise ahead of the November Budget. Reeves highlights the challenging global economic environment, citing wars, trade barriers, and borrowing costs as factors affecting fiscal decisions. Despite assurances that she intends to protect key taxes for working people and improve their financial situation, she refrains from providing a definitive answer on VAT increases, urging the public to judge her by her record. Alongside these fiscal discussions, Reeves announced a new 'Youth Guarantee' scheme aimed at offering jobs to long-term unemployed young people, with potential benefit sanctions for those refusing offers. Internal Labour tensions also persist, with figures like Andy Burnham calling for change while Reeves supports Prime Minister Starmer's stance against certain policies viewed as discriminatory.