The UK is facing bankruptcy if Labour increases taxes without cutting welfare spending, Conservative leader Kemi Badenoch has warned.The Tory leader accused Chancellor Rachel Reeves of plotting a “stealth tax bombshell” in next week’s Budget to fund increased welfare payments because of her failure to cut the benefits bill.She added: “If she comes back for more taxes without having serious cuts in public spending, especially on welfare, then she is going to ruin our economy.”Labour said Badenoch’s plans would mean a return to austerity and cuts for schools, hospitals and police.Reeves is widely expected to scrap the two-child benefit cap, which means low-income families do not receive further benefits when they have a third or subsequent child, to tackle child poverty. She is also expected to freeze income tax thresholds to plug a gap in her spending plans, which would mean people would be dragged into paying more tax as wages rise. Badenoch said her party would oppose this “every single step of the way”.In a speech setting out her party’s plans for the economy, she claimed the government’s U-turn on welfare reforms and the expected scrapping of the two-child benefit cap will leave the chancellor needing to find an extra £8.5bn.”If Labour do scrap the two-child benefit cap, the future Conservative government would bring it back,” she told reporters after her speech.”The cap makes sure people on benefits have to make the same decisions about having chi …
Article Attribution | Read More at Article Source
[mwai_chat context=”Let’s have a discussion about this article:nnThe UK is facing bankruptcy if Labour increases taxes without cutting welfare spending, Conservative leader Kemi Badenoch has warned.The Tory leader accused Chancellor Rachel Reeves of plotting a “stealth tax bombshell” in next week’s Budget to fund increased welfare payments because of her failure to cut the benefits bill.She added: “If she comes back for more taxes without having serious cuts in public spending, especially on welfare, then she is going to ruin our economy.”Labour said Badenoch’s plans would mean a return to austerity and cuts for schools, hospitals and police.Reeves is widely expected to scrap the two-child benefit cap, which means low-income families do not receive further benefits when they have a third or subsequent child, to tackle child poverty. She is also expected to freeze income tax thresholds to plug a gap in her spending plans, which would mean people would be dragged into paying more tax as wages rise. Badenoch said her party would oppose this “every single step of the way”.In a speech setting out her party’s plans for the economy, she claimed the government’s U-turn on welfare reforms and the expected scrapping of the two-child benefit cap will leave the chancellor needing to find an extra £8.5bn.”If Labour do scrap the two-child benefit cap, the future Conservative government would bring it back,” she told reporters after her speech.”The cap makes sure people on benefits have to make the same decisions about having chi …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]
