Future tax rises won’t be needed, insists Rachel Reeves

From next April, employers will have to pay NI at 15% on salaries above £5,000, instead of 13.8% on salaries above £9,100 currently.

Ministers have argued the hike is a tough but necessary decision required to fund public services and fix a “hole” in public spending plans they inherited from the Conservatives.

But it has led to a political row, with opposition parties arguing it will dent future economic growth and make companies less likely to hire workers.

Speaking at a Confederation of British Industry (CBI) conference last week, the chancellor suggested further rises would not be required because Labour’s Budget would “put our public finances back on a firm footing”.

She added: “Public services now need to live within their means because I’m really clear, I’m not coming back with more borrowing or more taxes”.

She told business leaders she wanted to raise extra revenue “all at once” to give firms confidence she would not have to “come back for more” in future years.

But Business Secretary Jonthan Reynolds gave a less specific commitment that only “comparable” business tax rises would not be repeated, when asked by MPs.

Sir Keir Starmer then declined to repeat the pledge during Prime Minister’s Questions last week.

At a regular scrutiny session in the Commons on Monday, her first appearance in Parliament since her CBI comments, Conservative MPs pushed her to repeat her pledge not to raise taxes.