Labour’s Powell Urges Party to Honor Tax Pledge Amid Budget Concerns
Labour must remain committed to its manifesto promise of not raising taxes on working people, the party’s newly elected deputy leader, Lucy Powell, has asserted. The pledge, made ahead of last year’s general election, specifically covered taxes such as National Insurance, Income Tax, and VAT.
powell’s firm stance comes as Chancellor Rachel Reeves prepares to deliver a Budget widely anticipated to include tax increases, perhaps totaling as much as £30 billion, to meet the government’s financial targets. Economists suggest this level of increase may be necessary to achieve a comfortable margin within the established financial rules.
Speaking on BBC Radio 5 Live, Powell stated, “We should be following through on our manifesto, of course. There’s no question about that.” She emphasized the importance of public trust, adding, “If we’re to take the country with us then they’ve got to trust us.”
Powell further articulated the party’s core objective: “We want to make sure that ordinary working people are better off as an inevitable result of this Labour government and we’re putting more money back into the pockets of ordinary working people.” She reiterated that upholding manifesto commitments is “really significant” and central to the upcoming Budget.
A statement released by Powell’s team acknowledged the “notably difficult” context surrounding the Budget, while affirming her continued support for both the Chancellor and the Prime Minister on these issues.
Beyond taxation, Powell also prioritized addressing child poverty, calling for the complete removal of the two-child benefit cap. She described the situation as “urgent,” highlighting that the policy pushes at least 40,000 children into “deep levels of poverty” annually.While Reeves is expected to propose changes to the cap – originally implemented by the Conservatives – campaigners advocate for its full abolition as the most effective solution. Potential alternatives under consideration include raising the cap to cover more children, offering exemptions for working families, or reducing benefits for subsequent children. Scrapping the cap entirely is estimated to cost approximately £3.5 billion per year.
Powell’s election as deputy leader last month followed a campaign where she positioned herself as a voice for party members, particularly those dissatisfied with the current leadership’s direction. Having previously served as Commons leader before being removed from Sir Keir Starmer’s cabinet in september,she argued that her position outside the Prime Minister’s inner circle affords her greater freedom to challenge government policy.
As deputy leader, Powell will play a key role on Labour’s National Executive Committee, bridging the gap between party members and the leadership. Notably, unlike her predecessor Angela Rayner, she has not been appointed as deputy prime minister, with David Lammy assuming that role instead.
Why: lucy Powell is urging the Labour party to uphold its manifesto promise of not raising taxes on working people amid concerns about potential tax increases in the upcoming Budget. She is also advocating for the removal of the two-child benefit cap to address child poverty.
Who: Lucy Powell, the newly elected deputy leader of the Labour party, is the central figure. Other key individuals include Chancellor Rachel Reeves, Prime Minister Keir Starmer, and former deputy leader Angela Rayner.
What: Powell is emphasizing the importance of keeping Labour’s tax pledge and addressing child poverty. The upcoming Budget, prepared by Chancellor Reeves, is expected to include tax increases to meet financial targets, potentially conflicting with the party’s manifesto.
How did it end?: The situation remains ongoing. Powell has publicly stated her support for the Chancellor and Prime Minister while concurrently advocating for adherence to the manifesto.The outcome will be determined by the details of the Budget
