Rachel Reeves 'can't rule out' tax rises in 2026
The UK’s tax burden is already at its highest since the Second World War.
Chancellor Rachel Reeves has said it would be "wrong to start writing future budgets" and cannot rule out tax rises in the new year.
Listen to this article
Ms Reeves said that she increased the nation's "fiscal headroom" so that the UK is "better able to withstand those sorts of shocks", which she hopes will reduce the need for further tax changes.
The chancellor has already faced criticism after announcing £66 billion in tax hikes, with many accusing her and Prime Minister Keir Starmer of breaking their manifesto promises not to increase income tax, NI or VAT on working people.
Her latest statement follows the intense scrutiny facing Ms Reeves over her decision to increase taxes by £26 billion in the budget last month.
She had previously claimed that she would not be “coming back with… more taxes” following a £40 billion rise in her first Budget.
The UK’s tax burden is now at its highest since the Second World War.
Read more: NYE strike planned for Palace of Westminster security
In an interview with The i Paper, she said it was too soon to predict next year's decisions.
“The Budget was just a couple of weeks ago, and I made my decisions in that budget.
"It would be wrong to start writing future budgets just a couple of weeks after the last Budget.
She stressed that her decisions in the budget were to "increase the fiscal headroom that the Government has", claiming she has "more than doubled that".
The chancellor went on to claim that this will help the nation withstand any shocks and reduce the need to adjust taxes.
Speaking about ongoing volatility in the world, Ms Reeves argued that the best thing for the government to focus on is "to help young people get on the housing ladder".
She stressed the difficult situation for first-time homebuyers, saying she bought her first property in her 20s but that this would not be possible for her in the economy today.
Reeves said that first-time home ownership is a key factor in securing the economic growth needed to boost the British economy.
The news comes ahead of her plans to relax UK's mortgage borrowing rules for first-time buyers.