Tuesday, July 15

THE TRANSPORT SECRETARY SAYS TAX RISES HAVE NOT BEEN DISCUSSED – But the Tories accused her of “barely disguised” hints that they’re on the way. 

Transport Secretary Heidi Alexander was asked if Sir Keir Starmer and the rest of the cabinet had discussed hiking taxes in the wake of the government’s failed welfare reforms, which were shot down by their own MPs.

Tax rises were discussed among the cabinet last week – including on an away day on Friday, but Tax increases were not discussed “directly”, Ms Alexander said, but ministers were “cognisant” of the challenges facing them.

Asked what this means, Ms Alexander added: “I think your viewers would be surprised if we didn’t recognise that at the budget, the chancellor will need to look at the OBR forecast that is given to her and will make decisions in line with the fiscal rules that she has set out.

“We made a commitment in our manifesto not to be putting up taxes on people on modest incomes, working people. We have stuck to that.”

Ms Alexander said she wouldn’t comment directly on taxes and the budget at this point, adding: “So, the chancellor will set her budget. I’m not going to speculate on what the contents of that budget might be.  “When it comes to taxation, fairness is going to be our guiding principle.”

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