On September 29, 2025, the political temperature in the UK soared as Chancellor Rachel Reeves found herself at the center of a media storm over the government’s tax and spending plans. As the Labour Party conference unfolded in Liverpool, Reeves faced a barrage of questions from journalists and the public, all eager to know whether the party would stick to its manifesto commitment not to raise key taxes—especially VAT, income tax, and national insurance—amid growing economic uncertainty and a looming fiscal crisis.
The day began with a tense live interview on Good Morning Britain, where presenter Susanna Reid pressed Reeves repeatedly for a straightforward answer on VAT. Reid, known for her tenacious interviewing style, asked, “Does that mean that you might increase VAT or you’ll rule out increasing VAT as the manifesto says?” Reeves, maintaining composure, replied, “The manifesto stands and we are determined not to increase those key taxes during the ongoing cost of living crisis.” But the answer didn’t satisfy Reid, who pressed the chancellor seven more times, seeking a simple yes or no. Reeves, however, stuck to her script: “What I’m doing is explaining why we made those commitments.” The exchange grew increasingly tense, with Reid interrupting to say, “I don’t understand why it’s such a hard question to simply answer ‘yes or no’ to.” Despite the grilling, Reeves refused to deviate, reiterating, “The Manifesto stands and it stands for a reason.”
Reeves’ evasiveness became a talking point online, with viewers praising Reid’s persistence. As reported by Metro, one viewer wrote, “Susanna Reid was just eating up the chancellor on live TV, go diva,” while another remarked, “Well done Susanna that put Rachel Reeves on the backfoot she looked like a rabbit in head lights.” The interview, coming just two months before the anticipated budget announcement in November, underscored the public’s anxiety over possible tax hikes as the government faces a massive fiscal shortfall.
The issue of tax rises wasn’t confined to morning television. Later that day, senior cabinet minister Darren Jones appeared on Sky News, where he was also pressed on whether Labour would honor its pledge not to raise VAT or income tax. Jones echoed Reeves’ careful language, saying, “Labour’s manifesto stands today because decisions haven’t been taken yet.” When asked directly if he could rule out tax increases, Jones replied, “I’m not ruling anything out or anything in. All I’m saying is today the manifesto stands. We’ve got a budget process to go through, and any decisions will be announced in parliament in the normal way.”
The ambiguity from both Reeves and Jones fueled speculation that the government might be preparing to break its manifesto promise. According to Sky News, the independent Office for Budget Responsibility (OBR) is set to release a forecast on October 3, 2025, expected to reveal a fiscal black hole of at least £20 billion. The options for filling this gap are limited: borrowing (which could spook financial markets), spending cuts, or tax rises. Reeves, in her party conference speech, warned of “further tests” ahead, made “harder by harsh global headwinds” and the long-term damage done to the economy. She laid the blame for the dire fiscal situation squarely on the previous Conservative government, stating, “There is nothing progressive, nothing Labour, about government using one in every £10 of public money it spends on financing debt. Billions of pounds every year going towards repaying debt. Debt racked up by the Tories, paid to overseas hedge funds and investors. That’s not how I want to spend public money.”
While Reeves refused to rule out tax hikes in her conference speech, she did appear to close the door on a “standalone wealth tax” during an interview with Bloomberg TV earlier that morning. As The Independent reported, Reeves stated she would not raise the headline rates of income tax, national insurance, or VAT at the budget. “She recommits to the manifesto on the big three and corporation tax as well. Dispels speculation this week. Also rules out wealth tax,” noted political editor Alex Wickham. This apparent contradiction—ruling out headline rate increases in one interview while refusing to give a straight answer on live television—only added to the confusion and speculation swirling around Labour’s fiscal plans.
At the same time, Reeves announced a new government-subsidized “youth guarantee” scheme at the conference, offering guaranteed work placements to long-term unemployed young people. She emphasized that unemployment benefits are not an alternative to work, warning that young people who refuse job offers could see their benefits stripped. This move, while aimed at addressing youth unemployment, also signals the government’s intent to tighten welfare spending as part of its broader fiscal strategy.
Labour’s internal challenges were also on display at the conference. Andy Burnham, a prominent party figure, pushed back against calls for “simplistic statements of loyalty” to party leader Sir Keir Starmer, cautioning that critics were “underestimating some of the peril” facing Labour. Starmer himself faced questions about his leadership, even as he tried to rally MPs and supporters. Meanwhile, polling expert Sir John Curtice warned there was “no obvious glimmer of hope” for the party, suggesting that the political landscape remains volatile and that Reform UK’s influence is unlikely to vanish soon.
The conference saw Labour’s top team, including Foreign Secretary Yvette Cooper, launch fierce attacks on Nigel Farage’s Reform UK party and the Conservatives. Cooper accused Reform of being “plastic patriots” and lambasted their stance on immigration and foreign policy, stating, “While we are standing up to Putin, Nigel Farage says he is the leader he most admires. While we are strengthening the NATO alliance, they trot out Russian propaganda claiming NATO caused the war.” She also highlighted Labour’s commitment to tackling migration abroad as well as at home, doubling support for Sudan and pledging new help for Rohingya refugees in Bangladesh.
The opposition, meanwhile, seized on Reeves’ refusal to rule out tax hikes. Tory shadow Sir Mel Stride criticized Labour for already raising taxes by £40 billion a year, including a £25 billion tax on jobs, and accused the government of leaving the door open to further increases while refusing to address the rising welfare bill. Reform UK’s head of policy, Zia Yusuf, accused Starmer of “smearing people as racist” for wanting border control, reflecting the deep political divides over immigration and economic policy.
As the November 26 budget approaches, the government’s carefully calibrated language—insisting that “the manifesto stands” while refusing to rule out tax increases—suggests difficult decisions lie ahead. With a £20 billion fiscal gap, harsh global headwinds, and a restless public demanding answers, Labour’s leadership faces a true test of its political and economic credibility.
In the weeks to come, all eyes will be on Rachel Reeves and her team as they attempt to balance fiscal responsibility with the promises that swept them into office, knowing that every word and every decision will be scrutinized by a nation hungry for stability and honesty in uncertain times.
