Tories warn Reeves not to raise taxes in spending review

ODN

Shadow Chief Secretary to the Treasury Richard Fuller urged Rachel Reeves to keep to her fiscal rules as she unveils her spending review. He said that whilst it is nice to announce spending, “money doesn’t grow on trees” and tax rises must be avoided. While backing key infrastructure projects, he said Reeves must prove she can fund plans without “coming back for more taxes”.   Report by Covellm. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn

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00:00It's always nice to announce what you're spending money on but of course money

00:03doesn't grow on trees it is paid for by taxpayers and ultimately if you can't

00:07tax people enough you borrow. Last year we had the largest tax increase in a

00:11generation. The forecast that the Chancellor made in March were already

00:16out of date on borrowing 14 billion ahead of her expectations on borrowing.

00:19The big question today is can she do those good things without coming back

00:24later in the year for additional tax increases. There are certain aspects of

00:27investment in the public infrastructure that are important to make and we'll

00:31look at each of those projects one by one to make sure that they're providing

00:34value for money for taxpayers but ultimately remember the money for that

00:39has come from businesses, largely from businesses, that large increase in taxes

00:43last October and those businesses are now paring back their investment. They haven't

00:47got the money to make those investments and they're paring back on employment too.

00:51More than a thousand jobs a day lost since the October budget because the

00:55decisions the Chancellor made so it's a balance between the two you can't just

00:58talk about the good stuff you've got to be fiscally responsible about what that

01:02means in terms of additional taxes and additional borrowing.

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