Speaking at Treasury Questions in the House of Commons, James Wild MP confronted the Chancellor over her broken promise not to extend the freeze on income tax thresholds, warning that working people will pay more tax as a result.
As Shadow Treasury Minister, James warned her decision to impose a £23 billion tax rise will drag a million more people into paying higher rate tax, and with cost of living pressures across this Parliament, he urged the Chancellor to change course.
Speaking in the House of Commons, James Wild MP said:
“The Chancellor promised in her first Budget that she would not extend the freeze on income tax as it would hurt working people and take more money out of their payslips.
“In her second Budget the Chancellor broke her promise with a £23 billion tax rise bringing a million more people into paying higher rate tax.
“When people are set to struggle with the cost of living over this Parliament, why is the government choosing to make their lives harder?”
In response, the Chancellor, Rachel Reeves MP, said:
“Some people have got short memories, haven't they, Mr Speaker? I remember on a number of occasions the Conservatives freezing those thresholds. We said in our manifesto that we would not increase the headline rates of national insurance, VAT, and income tax that working people pay.
“But, I did say very clearly at the Budget last year that we'd have to ask everyone to make a greater contribution because of the downgrade in productivity which is a result of the mismanagement of the economy of the last government over 14 failed years.”
