UK Minister Declines to Rule Out Tax Rises After Welfare Concessions

Following Labour's last-minute retreat on welfare reforms, Cabinet minister Pat McFadden declined to rule out potential tax rises, emphasizing that there are many 'moving parts' influencing the upcoming autumn budget. McFadden acknowledged that the government's concessions to backbench welfare rebels, including shelving plans to restrict eligibility for personal independence payment (PIP), will have financial consequences and have left a £4.8 billion hole in Chancellor Rachel Reeves’s spending plans. Despite these challenges, McFadden reiterated Labour's commitment to the tax promises made in their election manifesto but refused to speculate on specific tax changes. The welfare bill passed in the Commons with a majority after significant concessions, drawing mixed reactions within the party. Shadow minister Liz Kendall recognized the difficulties inherent in welfare reform but affirmed the importance of continuing changes to support benefits such as universal credit. The unfolding situation has intensified speculation about tax policy as Labour balances reform efforts with fiscal constraints.