Downing Street Rolls Pitch for Tax Hikes After Welfare U-Turn – Guido Fawkes

Downing Street Rolls Pitch for Tax Hikes After Welfare U-Turn

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Brace for impact. Downing Street is laying the groundwork for the inevitable tax hikes coming in the autumn to pay for Starmer’s U-turn on the welfare bill. Asked in the lobby briefing today how the government will account for the lost savings in the public finances, the Number 10 spokesman insisted there will be “no increases in borrowing” and the benefits splurge will be “fully funded“. Which is code for ‘open your wallet’…

The Institute for Fiscal Studies say the climbdown will cost the Exchequer £1.5 billion. The Resolution Foundation, meanwhile, think it will be more like £3 billion by the end of the Parliament. Either way, with further borrowing ruled out and ravenous backbenchers making spending cuts elsewhere now practically impossible, there is only one lever left to pull. The Chancellor needs more of your money…