Rachel Reeves has failed to repeat her pledge that there will be no more borrowing or tax rises following her first Budget.

The Chancellor last week sought to reassure business leaders that the £40 billion tax hikes announced in October would not be repeated, saying: “I’m really clear. I’m not coming back with more borrowing or more taxes.”

On Tuesday at Treasury questions, Conservative MP Nick Timothy (West Suffolk) told the Commons: “Last week the Chancellor told the CBI conference that she wouldn’t ‘come back with more borrowing or taxes’. Last Wednesday, the Prime Minister hung her out to dry and refused to repeat those words.

“So will she repeat them today and rule out any more borrowing or any more taxes, yes or no?”

Ms Reeves replied: “At the Budget in October we had to fill the £22 billion black hole left by the previous government. We will never have to repeat a Budget like that because we won’t ever have to clear up the mess of the previous government ever again.”

Ms Reeves had previously declared that there will be “no more borrowing or tax rises” following her first Budget, aiming to reassure voters of her commitment to fiscal responsibility.

She has sought to justify a £40 billion package of tax increases, including hikes in National Insurance, Capital Gains Tax, and stamp duty, as necessary to fix what she described as a “toxic Tory legacy.”

She also emphasised her focus on “protecting working people” and vowed that the funds raised would go towards vital investments in the NHS, education, and housing. She framed the Budget as a difficult but responsible choice to restore economic stability.

Critics, however, have been vocal. The Conservative opposition accused Reeves of breaking promises and failing to address public spending inefficiencies, branding the Budget as an overreach.

The Office for Budget Responsibility (OBR) questioned Reeves’ claim of inheriting a £22 billion deficit, stating the figure was closer to £9.5 billion. Economists, including Paul Johnson of the Institute for Fiscal Studies, warned that the measures could suppress economic growth despite immediate fiscal boosts. The lack of clear supply-side reforms to drive growth added to concerns.

Ms Reeves’ announcement of no further borrowing also sparked debate. Critics argued that her stance might limit flexibility in addressing future economic challenges. While the Chancellor highlighted increased NHS funding as a cornerstone of her plan, concerns over whether the tax hikes would deliver sustained economic growth remain prominent. The OBR has already revised down its growth forecasts despite the reforms.

The political fallout is significant, with Reeves gambling on the electorate accepting her argument that higher taxes now will lead to long-term benefits.

However, the opposition has been quick to remind voters of Labour’s pre-election promises, suggesting the Budget is a deviation from earlier commitments. This scrutiny has left Reeves defending her policies amidst a mix of cautious optimism and scepticism from experts and the public alike