UK (Parliament Politics Magazine) – Education Secretary Bridget Phillipson says Britain faces major economic challenges and government will act responsibly to protect long-term growth.
As reported by The Independent, Cabinet Minister Bridget Phillipson has reaffirmed her stance after the chancellor issued a warning over the UK’s struggling economy, pledging to make tough decisions to ensure long-term stability.
The education secretary acknowledged “major economic problems” affecting the country, promising decisive government action to address them.
Her comments come after Rachel Reeves’ major Downing Street speech, in which she hinted at sweeping tax rises, urging the public that “we will all have to contribute” to building a new future for Britain.
The chancellor continued to put the national interest ahead of “political expediency,” signaling she may break Labour’s manifesto pledge to keep income tax, national insurance, and VAT unchanged.
What did Bridget Phillipson say about breaking Labour’s pledge?
Bridget Phillipson said the government takes its manifesto commitments “seriously” but did not rule out breaking the pledge.
She said,
“Where it comes to our manifesto, of course, we take the commitments we made seriously.”
The education secretary stated,
“And as the chancellor was saying yesterday, we know that there are some big challenges in the economy. We’ve made lots of changes already that are putting things on a more stable footing.”
She added,
“That’s why we’ve seen interest rate cuts, we’ve seen growth being the fastest in the G7 in the first half of the year.”
Ms Phillipson said,
“But there are some big global factors that remain a challenge, and that’s why we will do what’s right, what’s necessary, both for the public but also for the long-term future of our economy.”
She said the Office for Budget Responsibility will reveal
“the damage of the chaotic Brexit we saw, the damage of years and years of austerity was even more serious than we anticipated.”
The cabinet minister continued,
“Unfortunately, that is causing major problems in terms of our economy and that’s where we are at the moment, I’m afraid to say.”
What did Rachel Reeves say about tackling the £50bn public finance gap?
Rachel Reeves faces the challenge of covering a £50bn hole in public finances while sticking to her principle of funding spending with tax revenue.
She said,
“I will do what is necessary to protect families from high inflation and interest rates, to protect our public services from a return to austerity and to ensure that the economy that we hand down to future generations is secure with debt under control.”
The chancellor added,
“If we are to build the future of Britain together, we will all have to contribute to that effort. Each of us must do our bit for the security of our country and the brightness of its future.”
Ms Reeves acknowledged that the previous government’s productivity fell short of expectations, adding that this has consequences for public finances through lower tax revenue.
When asked about sticking to the manifesto commitment, she responded,
“We’ve got to do the right things. The problem of the last 14 years is that political expediency always came above the national interest, and that is why we are in the mess that we are in.”
Pressed on resigning over a potential tax increase, the chancellor replied that she would not, saying,
“I am not going to walk away because the situation is difficult. I was appointed as chancellor to turn our economy around, and I’m absolutely determined to finish that job.”
Ms Reeves dismissed Conservative accusations that she was to blame for Britain’s economic troubles, saying at Commons Treasury questions that Labour inherited a £22bn deficit and that the emergency reserve had already been spent four times in just three months.
What did Sir Mel Stride say about Rachel Reeves and tax rises?
Shadow Chancellor Sir Mel Stride said Rachel Reeves should resign if tax rises go ahead.
He added,
“Rachel Reeves has made an emergency speech because she is panicking about the speculation she has fuelled. But all she’s done is confirm the fears of households and businesses – that tax rises are coming.”
What did Richard Tice say about Rachel Reeves and tax hikes?
Reform UK deputy leader Richard Tice stated,
“Rachel Reeves has today confirmed what we all knew – she’s going to hammer working people with even more tax rises. Instead of cutting waste and spending, deregulating and optimising for growth, we are just getting more of the same.”
What did the NIESR report say about rising income taxes?
A report from the National Institute of Economic and Social Research warned that the chancellor may have to break her manifesto pledge not to raise taxes on working people to prevent further long-term economic damage.
The report said a 2p rise in the 20 per cent basic income tax rate could generate around £20bn to fill the public finance gap. A 5p increase on the 40 per cent rate would bring in an additional £10bn, while a similar hike on the top rate would raise about £500m.
Which taxes are expected to rise in the 2025 UK budget?
The UK Autumn Budget 2025 will be presented on Wednesday, 26 November 2025, with tax increases are likely to fund rising government spending and address a fiscal gap.
Key tax changes are expected to increase income tax and National Insurance, with thresholds likely frozen and employer NI rising to 15%. Property and capital gains taxes may also rise, including council tax reforms, and a mansion tax.
