Rachel Reeves' tax rises could be the making or death of the UK Government

The Chancellor said “each of us must do our bit” and that “we will all have to contribute” as she declined to recommit to Labour’s manifesto pledges not to raise income tax, national insurance or VAT.

After what has been a difficult year, Ms Reeves is hoping that the move will be the catalyst to turn Labour’s fortunes around.

But she is playing a risky game by breaking one of her party’s key manifesto commitments.

It will either be what saves Labour or help Reform UK into Downing St.

Why was Reeves making the speech now?

People who keep a keen eye on politics will have been aware that the UK Government has been gearing up to raise taxes later this month.

But the Government is keen to make sure that the public is not alarmed when it happens.

Their hope is that making a live broadcast speech on a weekday morning would be the warning that punters need before the Budget in three weeks’ time.

Why is the Government planning to raise taxes?

Things have not gone as well for the UK Government as Labour folk envisaged.

Not only has there been several scandals and unpopular decisions, but economic growth has not been as strong as the Government were hoping for.

Reeves was keen to blame global problems - such as Donald Trump’s tariffs - and domestic issues like a lack of productivity for the “hard choices” she will have to make.

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The Chancellor used the word “challenge” nine times in her speech, and then a whopping 15 times in the question and answer session in what seemed to be a bid to pit the blame on things outwith her control.

She has said she “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.”

Why did Labour pledge not to raise taxes before the election?

Before last year’s general election, Labour pledged that it would not raise taxes on “working people”.

It vowed not to increase national insurance, VAT and income tax.

They used a bit of mental gymnastics last year by raising national insurance for employers but not employees.

But this time round the Government seems set to break its manifesto commitment.

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It seemed strange for the party to make the pledge not to raise taxes because it is something which most people expect Labour Governments to do.

Generally Labour increases public spending when it is in office and higher taxes are required for that.

But because it had been nearly 20 years since Labour had won an election, the party was so determined not to put voters off that it vowed not to do so.

How will the tax rises be received?

There has been discontent among the public about the lack of change which has come about since last year’s general election.

Part of that has been because of poor decisions, but also because of the knots which Labour has tied itself into with its manifesto commitments.

If the expected tax increases make people feel better off and improve public services, then it could be what wins Labour another term in office.

But if people are forced to pay more in taxes and their circumstances do not improve, it could help usher Nigel Farage into No10.