Politics latest: Chancellor Rachel Reeves admits she was 'wrong' during election when she said taxes would not have to rise

Reeves says she was 'wrong' to rule out tax rises during election campaign

Chancellor Rachel Reeves has admitted that she was "wrong" to rule out tax rises during the election campaign. In a speech to the Confederation of British Industry (CBI), Reeves said that the government would need to "take difficult decisions" in order to balance the books.

Reeves said that she had not wanted to "scare people" with talk of tax rises, but that she now believed that it was necessary. She said that the government would need to "look at all options" for raising revenue, including increasing taxes on businesses and individuals.

Reeves' admission that she was wrong to rule out tax rises is a significant U-turn for the government. During the election campaign, Reeves and other Labour politicians repeatedly promised that they would not raise taxes. However, the government has since come under pressure to find ways to reduce the deficit, which is currently running at over £300 billion.

The government's decision to raise taxes is likely to be unpopular with voters. However, Reeves argued that it was necessary to "take difficult decisions" in order to protect the economy.

Reaction to Reeves' speech

Reeves' speech has been met with mixed reaction. Some commentators have praised her for being honest about the need to raise taxes. Others have criticized her for breaking her promise not to raise taxes. The CBI said that it was "disappointed" by Reeves' announcement, but that it understood the need for the government to take action to balance the books.

The government's decision to raise taxes is a significant development. It is likely to have a major impact on the economy and on the lives of ordinary people. It is important to remember that the government has a responsibility to manage the economy responsibly and to take difficult decisions when necessary.