Labor must stick to its tax manifesto pledges, the Deputy Leader said

Labor must stick to its manifesto pledge not to raise basic taxes, the party’s new Deputy leader Lucy Powell has said.

Ahead of last year’s general election Labor promised not to increase taxes on “working people”, including national insurance, excise duty and VAT.

Asked if it would be acceptable to break this promise, Powell told the BBC: “We have to stick to our Manifesto, of course. There’s no question about that.”

Chancellor Rachel Reeves is widely expected to increase taxes in her budget this month, with the government repeatedly refusing to rule out a tax hike.

Economists say that Reeves may need a tax increase of up to £30bn to meet his financial obligations by a comfortable margin.

In an interview with Matt Chorley on BBC Radio 5 Live, Powell was pressed on how important hard work is to deliver on manifesto promises.

“If we are together with the country we are with they will have confidence in us,” he said.

He added: “It is very important that we stand by the promises that elected us and we do what we say we will do.”

Powell also called for the two-child child benefit to be lifted “in full”, saying that this is the only way to ensure that child deprivation falls in the way of parliament.

He added that the issue is “urgent” because every year the policy has at least 40,000 children “pushed into deep levels of poverty as a result”.

The government is facing growing pressure from its own MPS to lift the cap, which restricts child tax credit and universal credit to first households for most households.

It is expected to make changes to the changes in the cape, introduced by the conservatives, in his budget.

However, experts estimate that scrapping it completely would cost around £3.5bn a year.

Other options reportedly considered by the Treasury include increasing the cap to cover three or four children, freeing up families where one adult works for an adult for the third and subsequent children.

Campaigners have called for its abolition altogether, arguing that it is the most effective way to reduce child poverty.

Powell was chosen as Deputy Labor Leader last month, Education Secretary Bridget Phillipson.

He was sold out of Sir Keir Starmer’s Cabinet in September and drew support from members unhappy with the direction of his leadership.