Rachel Reeves Defends Historic Tax Hikes Amid Welfare Spending Criticism

British finance minister Rachel Reeves defended her decision to increase taxes to the highest level since World War II, facing criticism over her proposal to expand welfare spending. She emphasized the necessity of these measures despite accusations from the opposition, while maintaining confidence in her economic strategy.

British finance minister Rachel Reeves staunchly defended her decision on Thursday to raise taxes to post-war highs, amid criticism over her plans for increased welfare spending. The Finance Minister's tax strategy aims to fund expansive welfare measures, but has drawn ire from opponents who accuse her of burdening workers excessively.

Facing media scrutiny a day after announcing tax hikes amounting to £26 billion, Reeves illustrated her position by scrapping a cap on child benefits for low-income families with more than two children. While the Conservative Party blasted her initiative as a tactic to placate her party's lawmakers, Reeves remains steadfast, pointing to the broader economic outlook necessitating her decisions.

The Resolution Foundation has highlighted that her budgetary measures represent the largest consecutive tax increases by a new government. Despite opposing views, Reeves argues for economic prudence, planning further strategies to invigorate growth while managing to keep long-term borrowing costs stable in the financial markets.

(With inputs from agencies.)