Budget 2025 live: IFS accuses Rachel Reeves of breaking tax manifesto promise in damning Budget verdict
Rachel Reeves ‘has broken manifesto pledge’ says critical IFS response to Budget
- The Institute for Fiscal Studies (IFS) has accused Rachel Reeves of breaching Labour’s manifesto following her latest Budget.
- The Budget includes £26bn in tax hikes, which the Office for Budget Responsibility (OBR) states will push the tax burden to an all-time high.
- Measures such as freezing income tax thresholds are expected to result in 1.7 million people paying more tax.
- The IFS specifically noted that threshold freezes and capping pension salary sacrifice schemes will lead to increased National Insurance contributions.
- Reeves acknowledged that working people would 'contribute a bit more' but did not admit the Budget broke Labour's manifesto promise against raising taxes on working people.
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