Rachel Reeves is deluded: Britain is being taxed to collapse

 

 

Daniel Hannan blasts Chancellor Rachel Reeves for “delusional” claims that Britain’s economy is strong while taxes soar and growth stalls. Writing in the Daily Mail, Hannan accuses Reeves of abandoning her pre-election promises not to raise taxes, calling her new levies “a betrayal of trust.”

 

Reeves had vowed that Labour’s fiscal plans were “fully costed, fully funded,” but within months of taking office, she froze tax thresholds, widened inheritance tax, and extended National Insurance. Now, ahead of the November Budget, she is reportedly considering further hikes — despite already presiding over what the IMF says is the fastest tax-raising pace in the G7.

 

Hannan argues that Reeves blames everyone but herself — the Tories, Liz Truss, Brexit — for an economy weakened by her own spending policies. Public sector pay hikes, soaring welfare costs, and an expanding civil service have driven up the deficit, he says, while productivity and private-sector growth have stalled.

 

According to Hannan, Reeves has trapped the country in a “doom loop”: higher taxes slow growth, which reduces revenues and forces yet more tax rises. Britain, he warns, is now a nation where more households receive state aid than pay for it — a dynamic he calls “terrifying.”

 

The only solution, he insists, is to cut spending. Restoring pre-pandemic levels — or even those under Tony Blair, when government spending accounted for 34p in every pound of national income versus today’s 45p — could revive growth without more taxes.

 

Instead, Hannan says, Reeves is pushing Britain toward “poverty and irrelevance.” “The more she taxes, the slower we grow,” he writes. “Heaven help us.”

 

Key Takeaways:

• Hannan accuses Rachel Reeves of breaking tax promises and economic delusion.

• IMF warns Britain now leads the G7 in tax hikes amid weak growth.

• Hannan urges major spending cuts to break Labour’s “doom loop.”

 

Source: DAILY MAIL

 

 

 

 

 

Doesn't look that bad?....But this is from the Daily Fail.