Tories urge government to rule out tax rises ahead of budget
With under six weeks until the UK budget, the shadow chancellor is pressing ministers to rule out tax increases, while the Conservative leader's attack on a Bank of England appointment has drawn criticism.
UK economic policy is climbing the political agenda with less than six weeks remaining before the budget. The Bank of England is due to announce its latest interest rate decision, while shadow chancellor Andrew Griffith is delivering his first major speech since being appointed just over two weeks ago.
Griffith has urged chancellor John Healey to rule out tax rises in the upcoming budget. In morning interviews, he argued that taxes, or fear of them, are pushing major taxpayers to leave the country, costing hundreds of millions of pounds in revenue that would otherwise fund public services. He said the government could immediately reassure small businesses and self-employed workers by confirming taxes will not rise. His speech will focus on small businesses, and he plans to announce two newly appointed advisers — former MP and chartered accountant Craig Mackinlay, and Robert Colvile, outgoing head of the Centre for Policy Studies — tasked with producing a report on cutting red tape for businesses.
Bank of England appointment dispute
Conservative leader Kemi Badenoch seized on news that TUC general secretary Paul Nowak had been appointed a non-executive director on the Bank of England's court, framing it as evidence of union influence over the Labour government. However, the appointment follows decades of precedent: Nowak's predecessor at the TUC, Frances O'Grady, held the same Bank of England role and was appointed under a Conservative government, as was her predecessor before her. The court does not set interest rates; it oversees the Bank's administration.
Northern Ireland secretary Chris Bryant criticised Badenoch's comments, calling them an embarrassment. Rupert Harrison, a former chief of staff to ex-chancellor George Osborne, also urged Conservative colleagues to keep perspective, noting that a trade union representative has traditionally sat on the Bank's court for decades, dating back to the postwar period.
