Culture Secretary Lisa Nandy has cautioned that election commitments “matter” as the government prepares for its imminent Budget, suggesting that Labour deputy leader Lucy Powell’s public support for the manifesto vow not to raise income tax, value added tax or national insurance is significant.

The intervention comes amid mounting speculation that Chancellor Rachel Reeves may breach the pledge to bridge a fiscal shortfall estimated at up to £30 billion.

Last week Reeves declined to rule out tax increases in the November 26 Budget and indicated that “each of us must do our bit” to bolster public finances, signaling that a rise in income tax is under active consideration.

Internal Cabinet sources and economic experts say a one-pence increase in the basic rate of income tax could generate around £8 billion annually, though this option carries material political risk.

In her remarks, Nandy endorsed Powell’s message and called on ministers to balance “fair choices” with the need to honour the party’s promises.

She acknowledged the challenging economic landscape the government inherited but emphasised that maintaining public trust depends in part on delivering what was committed to the electorate.

Labour figures are split.

While Reeves and Prime Minister Sir Keir Starmer stress the need to act in the national interest, Powell and several backbenchers argue the Budget must deliver for working-class households without breaking the manifesto.

Critics warn that breaching the tax pledge could undermine trust in politics and damage Labour’s credibility ahead of the next election.

As the Budget approaches, all eyes are on how ministers reconcile fiscal necessity with political commitments, and whether the path chosen will reflect Nandy’s insistence that promises should not be treated lightly.