The Shadow Chancellor has binned off claims that he believed Rachel Reeves should raise taxes in the upcoming Autumn Budget.

Speaking to Andrew Pierce and Miriam Cates, Sir Mel Stride insisted that previous claims he made surrounding taxes at the Conservative Party Conference fringe event were “taken out of context”.

During the event, Sir Mel boldly announced that he would raise income tax, when asked what he would do if he were in Rachel Reeves’ shoes.

Showing his working at the Onward and British Chambers of Commerce event, he further explained that if tax rises were necessary, zoning in on income tax would be preferred as VAT would be inflationary.

He declared: “If I were in exactly her position and I had to deal with tax, and I was down that end of the spectrum where it was really big, I would probably go for income tax on the basis that VAT would be inflationary.”

Consequently, the Shadow Chancellor was grilled live on GB News about his bold claim.

“At the Tory conference, at a fringe meeting, you said you would raise income tax if you were the Chancellor,” Andrew put to the top Tory.

“No, I didn’t,” he immediately denied. “What I actually said that was taken out of context.

“I was given a particular scenario after a very lengthy conversation about what the Chancellor should do.

“And what I was very clear about was that what the Chancellor should be doing is controlling spending.

“For example, that conference, I came forward with £47billion worth of spending reductions, including £23billion in reductions to the welfare bill.

“That’s the way to avoid having to put these taxes up. But now, in no way would I have been suggesting that the Chancellor’s best options were putting income tax up, let alone any tax.”

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The Central Devon MP explained that when it comes to November 26 “you’re looking at tax increases – whichever way you cut and dice it”.

“If she raises the tax then she should face the axe,” Sir Mel succinctly said, echoing the slogan emblazoned on placards raised by his campaigners behind him.

During PMQs this week, the Prime Minister failed to stay true to his manifesto pledges to not raise VAT, income tax or National Insurance – the very promise that Labour candidates parroted off to voters preceding July 2024.

Earlier this morning, Mrs Badenoch laid out her candid advice to Sir Keir Starmer, goading him on to fire his Chancellor if she increased taxes.

The North West Essex MP claimed that it indicated tax rises were on the horizon, slamming that Labour was failing to make sufficient spending cuts for Britons.

The Conservative speculation that Labour could be in for breaking their promise to voters is joining the wider rumours that Ms Reeves is looking to plug a £30billion black hole in the Treasury’s finances.

Sir Mel blasted: “It’s because of the choices that she took, which had principally been back at the time of the last budget, which was exactly a year ago today, putting up all those taxes in a way she promised she wouldn’t during the General Election, and crucifying businesses and growth and spending lots of money and driving up inflation and keeping interest rates higher than they would otherwise have been.

“These are the choices that have driven that big black hole. And that’s why we’re now all having these horrible speculations, which are very uncertain for everybody as to what taxes she’s actually going to go for.”

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