Britain is stuck in a tax ‘doom loop’ warns former LABOUR cabinet minister – as John Healey urged to drop plans for Budget tax hikes

Former Labour Cabinet minister Liz Kendall has warned that further Budget tax rises could deepen Britain’s cycle of higher taxes and borrowing. She urged Chancellor John Healey to prioritise economic growth and curb rising welfare spending, arguing that taxes and borrowing alone cannot resolve the country’s problems.

Healey said families and businesses face a period of economic pressure, but strained public finances mean any energy bill support should be temporary and targeted at people on benefits and very low incomes. The energy price cap is forecast to rise by about 20 per cent in January and could exceed £2,000. The Government has also defended a £25 billion increase in employers’ National Insurance, while a think tank has proposed freezing the minimum wage for five years, claiming it could create up to 600,000 jobs.