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Business leaders and Tory MPs have expressed anger at Labour's plans to raise £40billion through tax hikes and spending cuts.
08:13, Sun, Oct 20, 2024 | UPDATED: 08:24, Sun, Oct 20, 2024
Reeves could try and raise £40billion through taxes and spending cuts (Image: Getty)
Chancellor Rachel Reeves has sparked fury with her reported plans to unveil one of the biggest tax hikes in history during her autumn budget.
Ms Reeves is looking to raise money to plug the £22billion black hole in the public finances.
It has been reported that the Chancellor plans to raise £40billion through tax rises and spending cuts.
Income tax, National Insurance contributions, and wealth taxes are all reportedly vulnerable to hikes.
But this has been met with a mixture of anger and concern from some business leaders and Tory MPs.
Kwarteng said Labour are putting the economy in a 'doom loop' (Image: Getty)
Speaking to The Sun, Tina McKenzie, from the Federation of Small Businesses, said: “Hiking small firms tax is a recipe for cuts to pay, hours and jobs. Tax on work should be going down, not up.”
Kate Nicholls, boss of UK Hospitality, said: “Increasing employer NICs would be a gut-punch to thousands of hospitality venues that are already struggling to pay the bills.
“These businesses want to create more jobs for local people but this tax increase will have the opposite effect.”
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Laura Trott, the shadow Treasury Minister, said plans to hike National Insurance contributions will cause a "bonfire of jobs right across the country.”
Former Chancellor Kwasi Kwarteng said Labour risk putting the economy in a "doom-loop."
He also hit out at the Government for handing out "inflation-busting pay rises to the unions" and then freezing income tax thresholds.
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