UK Chancellor Faces Pressure Over Tax Hikes

Rachel Reeves, the UK's shadow chancellor, is facing mounting scrutiny over her retraction of a pledge to avoid further tax increases, particularly after a substantial £40 billion tax hike in October. During a recent CBI conference, she claimed that public service funding would not require additional taxes, but she failed to reaffirm this stance when pressed by MPs, leading to concerns about Labour's economic strategy. Critics, including Conservative MPs, have highlighted her reluctance to repeat her previous assurances, suggesting a potential shift in Labour's fiscal approach. Reeves justified the earlier tax increases as necessary to address a £22 billion deficit left by the previous government, yet the Office for Budget Responsibility contests the accuracy of this figure. Business confidence is reportedly wavering as speculation rises regarding future tax hikes, with Labour's plans remaining ambiguous. The situation has prompted calls for clarity from within her party as they prepare for an imminent speech from the Prime Minister aimed at redefining Labour's economic agenda.