No 10 fails to rule out tax rises to pay for Starmer’s welfare reform climbdown
Downing Street has failed to rule out tax rises to pay for a potential U-turn on Sir Keir Starmer’s £5bn welfare reform as the prime minister remains locked in crisis talks to stave off a Labour rebellion. Sir Keir is considering concessions in a bid to save his benefit cuts after more than 120 Labour MPs signed an amendment that would effectively kill them off. But there are growing questions over how a climbdown would be funded.Asked whether the government accepts it would be forced to hike taxes, the prime minister’s official spokesperson said ministers wanted to get the changes “right”, adding that the chancellor would take tax decisions “in the round in the future”. The row comes as top economists warned that failing to pass the reforms would wipe out the chancellor’s financial headroom ahead of her Budget this autumn, meaning hike taxes or cuts to spending elsewhere would be needed to plug a black hole. Sir Keir doubled down on the need for the reforms on Thursday, warning benefits claimants were “failed every single day” by a “broken system” but admitted Labour MPs want to see “reform implemented with Labour values of fairness”. However, rebels told The Independent that any concessions would have to be wide-ranging if they were to be accepted.Keir Starmer is locked in crisis talks More
