Chancellor refuses to rule out tax rises and brushes off resignation talk after bruising week
Rachel Reeves has refused to rule out tax hikes in the upcoming autumn budget, even as she faced questions over her political future following an emotional and turbulent week in government.
In a candid interview with The Guardian, the chancellor admitted that the recent chaos surrounding the government’s welfare U-turn had inflicted “damage” and acknowledged that there would be “costs” to the decision. But despite a tearful appearance at Prime Minister’s Questions, Reeves insisted she never once thought about walking away from the job.
“I didn’t work that hard to then quit,” she said, hitting back at suggestions that she was considering resigning after appearing visibly upset in the Commons on Wednesday.
The teary moment, which unfolded on live television, unsettled financial markets and sparked rumours about her future. But No 10 moved quickly to back her, with Downing Street officials emphasising that she and Prime Minister Keir Starmer remain “in lockstep”.
Reeves, who has been facing pressure from within Labour’s own ranks over her economic strategy, said the Commons incident stemmed from a “personal matter” on a “tough day in the office”, but defended her decision to attend the weekly session.
“In retrospect, I probably wished I hadn’t gone in,” she admitted. “But I think most people can relate to that – that they’ve had tough days.”
Now, with eyes on the autumn statement, Reeves has left the door open for potential tax rises, saying only that she would act “responsibly” and deliver a budget in line with Labour’s commitments.
Her remarks are likely to stoke fresh concern among voters and some Labour MPs already rattled by the recent welfare row, which saw the government backtrack under pressure from rebel backbenchers and campaign groups.
But Reeves appears determined to weather the storm.
“I think people have seen that I’m back in business and back out there,” she said, signalling she has no intention of stepping aside.
