UK voters expect tax increases as Reeves comes under fire
A new poll by YouGov shows UK voters are sceptical that spending pledges can be achieved without Labour breaking its fiscal rules or manifesto tax promises.
This comes after Chancellor Rachel Reeves unveiled her second Spending Review on 11 June, outlining the government’s fiscal priorities and funding allocations for the coming years.
When it comes to key measures set out by the chancellor, increased funding for the NHS gains the most approval, with 83% describing this as the right priority for spending, YouGov’s data shows.
Most Britons also back plans to increase funds for repairing and refurbishing school buildings (76%), build more affordable homes and homes for social rent (68%), and increase the number of prison places (56%).
At the bottom of the list was the proposal to fund railway expansion, including a new line between Milton Keynes, Oxford and Cambridge, as well as TransPennine rail links. This is seen as an appropriate priority for spending by 35% of Britons, compared to 44% who say it is the wrong priority.
Tax increases expected, while Reeves proves unpopular
The government has been painstaking in its messaging approach that spending commitments will neither breach Labour’s fiscal rules nor its manifesto promises not to raise income tax, National Insurance or VAT.
However, YouGov’s data shows that the public is sceptical: 67% believe the government will probably need to increase taxes or borrowing to pay for them, including 64% of Labour voters. Only 12% think they can probably be afforded from current revenues and tax changes that have already been announced.
Notably, just one in six Britons (16%) believe Rachel Reeves is doing a good job as chancellor, compared to 49% who say she is doing a bad job. This is only marginally less bad than it was three months ago, following the Spring Statement, YouGov said.
Among those who voted to put Reeves and her party in power last year, opinion is divided: 33% say Reeves is doing a good job, while 27% say she is doing a bad job. Again, this represents only a minor improvement since March.
Most Britons continue to think the government are handling the economy badly, at 64%, although this has fallen slightly from 70% in March. Still, only 23% say the economy is being handled well (up four points), including only 1% who think it is being managed “very well”.
Labour voters prove to be more positive on the government’s economic stewardship – indeed, more say that it is being handled well (50%) than badly (39%) – representing a reversal in attitudes since March.
