Concerns are mounting over Rachel Reeves’ financial competence as Chancellor’s maiden Budget approaches amid previous issues with expenses.
Nine years ago, Reeves had her parliamentary credit card suspended after owing more than £4,000 in unauthorised payments.
A Freedom of Information Act request revealed that the now-Chancellor was among 19 MPs to have their cards suspended by the Independent Parliamentary Standards Authority (Ipsa) after failing to show spending was genuine in 2015.
As Labour prepares to implement potentially unpopular changes, critics are questioning whether Reeves is the right person to steer the economy through these challenging times.
Concerns are mounting over Chancellor Rachel Reeves’ financial competence as the Labour Budget approaches amid previous issues with expensesPA
Labour’s approach to the Budget has been criticised as a “hot mess” by one tax adviser, The Telegraph reports.
The party is expected to implement significant tax increases, particularly on capital gains and inheritance. These moves are likely to spark outrage among middle-class households.
Inheritance tax, already Britain’s most unpopular tax, is tipped to see an increase in its haul.
The Financial Conduct Authority had to issue a warning last week due to fears that savers were making poor decisions – following comments made by the Chancellor.
Earlier this year, Reeves admitted on GB News that checking her bank statement made her “wince” as she found “the money coming in is increasingly short of the money going out”.
The admission came at a time when MPs were earning over £86,000 annually.
Adding to concerns, it was revealed last week that Reeves claimed more than £1,200 on expenses for help with her tax return.
A Tory source reportedly said: “If the Shadow Chancellor can’t run her own bank account, how on earth does she expect the public to trust her with the economy?”
The Chancellor is reportedly considering extending the freeze on income tax thresholds for another two years, until 2030. The move has been criticised as a “sinister stealth tax on working people” that could trigger significant backlash.
The Government’s approach to non-dom taxation has also been questioned. Warnings suggest that higher taxes for non-doms might ultimately cost the Treasury in the long run.
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After more than 100 days in power, critics argue that Labour lacks radical ideas to deliver the change they promised.
Toby Tallon, of wealth manager Evelyn Partners, told The Telegraph: “Its a hot mess. The constant chopping and changing of narrative has created worrying levels of uncertainty.
“It appears to me that there are only 10 or 20 people who really know what is going to be in the Budget, and not even they seem very sure themselves; that lack of clarity isn’t helping the confidence of business owners and investors.”
Megan Rimmer, chartered financial planner at Quilter Cheviot, added: “For as long as Ive been advising clients, Budget rumours have always triggered anxiety, but none more so than the current speculation.
Rachel Reeves is set to present her first Budget as Chancellor on October 30PA Media
“As we approach the Budget, the air is thick with concerns over potential tax changes especially around pensions leading to many anxious calls from clients.
“Naturally this has led to people wanting to make rash decisions with their finances that they may come to regret.
“Some clarity would be beneficial but the truth is you should only make decisions on your finances based on hard facts and therefore at the moment it is not wise to make any rushed decisions.”