Labour Chancellor Reeves Admits Party Disappointed Voters With £40bn Tax Hike

Chancellor Rachel Reeves has acknowledged that the Labour government has disappointed some voters since taking office, particularly due to its tax increases and broken promises, despite the party's intention to be business-friendly. She emphasized the difficulty of balancing tax, spending, and borrowing, noting that while no one wants higher taxes, government finances must be responsibly managed. Reeves defended Labour's record, pointing to investments such as the £200 million in carbon capture in Scotland and additional levies on wealthier individuals, but she rejected calls for a wealth tax, suggesting the current tax balance is appropriate. She also criticized Jeremy Corbyn's new left-wing party as unlikely to threaten Labour, characterizing Corbyn as having a big ego and recalling his past election defeats. Reeves admitted that Labour must deliver meaningful change or risk losing the next election, understanding voters' impatience but emphasizing fiscal constraints inherited from the previous Conservative government. She stressed the government's priority remains growing the economy by attracting investment and creating jobs while maintaining fiscal discipline.