Reeves signals she will break tax pledges - and gives strongest indication she will lift two-child cap

Rachel Reeves has signalled she is going to interruption her manifesto taxation pledges astatine the fund - and fixed her strongest denotation yet that she volition assistance the two-child payment cap.

The chancellor said the satellite has changed successful the twelvemonth since the past budget, erstwhile she reiterated Labour's manifesto committedness not to rise nationalist insurance, VAT oregon income taxation connected "working people".

"It would, of course, beryllium imaginable to instrumentality with the manifesto commitments, but that would necessitate things similar heavy cuts successful superior spending," she told BBC 5Live.

"I person been precise wide that we are looking astatine some taxes and spending," she added.

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The chancellor besides gave her strongest denotation yet she volition assistance the two-child payment headdress astatine the fund connected 26 November, saying it is not close a kid is "penalised due to the fact that they are successful a bigger family".

Ms Reeves blamed mediocre productivity and maturation implicit the past fewer years connected the erstwhile authorities "always taking the casual enactment to chopped concern successful obstruction and roadworthy projects, successful vigor projects and integer infrastructure".

She said she promised during the predetermination run to "bring stableness backmost to our economy".

'I'll ever bash what's close for UK'

"What I tin committedness present is I volition ever bash what I deliberation is close for our country, not the casual choice, but the happening that I deliberation is necessary," she added.

The chancellor blamed the UK's deficiency of maturation nether her tenure connected planetary conflicts, commercialized and tariffs implicit the past year.

In a excavation astatine Donald Trump, who has imposed wide-ranging tariffs connected countries astir the world, she said: "The tariffs. I don't deliberation anyone could person foreseen erstwhile this authorities was elected past twelvemonth that we were going to spot these large increases successful planetary tariffs and barriers to trade.

"And I person to beryllium chancellor successful the satellite arsenic it is not needfully the satellite arsenic I would similar it to be. But I person to respond to those challenges, and that's the liable happening to do."

Read more:
What taxation rises and spending cuts volition Reeves denote astatine budget?
Gordon Brown 'confident' of two-child payment headdress change

'Children should not beryllium penalised'

The authorities has, truthful far, resisted lifting the two-child payment cap, which means a household tin lone assertion kid benefits for the archetypal 2 children.

But, it is simply a contentious taxable wrong Labour, with 7 of its MPs suspended 2 weeks aft the predetermination for voting to scrap it, portion others are alert it volition outgo £2.8bn to bash so.

Former Labour premier curate and chancellor Gordon Brown has been pushing for Ms Reeves, who says helium is her hero, to assistance it.

She said she saw Mr Brown astatine Remembrance Sunday, wherever they "had a bully chat and we've emailed each different conscionable today", arsenic she revealed they talk regularly.

Ms Reeves added Mr Brown and Sir Tony Blair were large heroes of hers due to the fact that they did truthful overmuch to assistance children retired of poorness - the crushed she went into politics.

Pushed connected whether she would assistance the cap, she said: "I don't deliberation that it's close that a kid is penalised due to the fact that they are successful a bigger family, done nary responsibility of their own. So we volition instrumentality enactment connected kid poverty."

Mr Brown earlier told Sky News' Mornings with Ridge and Frost helium was "confident" of a two-child payment headdress alteration astatine the budget.

The latest YouGov polling recovered 59% of the nationalist are successful favour of keeping the headdress successful place, and lone 26% thought it should beryllium abolished.

Shadow chancellor Sir Mel Stride said: "Rachel Reeves has borrowed, spent and taxed similar there's nary time - and she's coming backmost for much due to the fact that she doesn't person a program oregon the spot to basal up to Labour's backbenchers, who are present calling the shots.

"My connection is clear: if Rachel Reeves reduces authorities spending - including the payment bill, she doesn't request to rise taxes again. "