Lib Dems brand Reeves "continuity Conservative Chancellor” as figures show stealth tax hike to hit London and South East hardest

EMBARGO: Immediate Release 

London and the South East are set to be hit hardest by the Chancellor’s stealth tax, House of Commons Library research commissioned by the Liberal Democrats has revealed.

The Liberal Democrats warned that Rachel Reeves is becoming a “continuity Conservative chancellor” after extending the stealth tax first brought in by Rishi Sunak.

The figures show an estimated 370,000 taxpayers in London and the South East are set to be dragged into a higher rate of tax by 2029-30 due to the Government’s extension of the freeze on income tax thresholds. The combined tax hit on both regions is estimated at an eye-watering £2.3bn in 2029-30.

Yesterday the Office for Budget Responsibility revealed that stealth taxes imposed by both the previous Conservative government and the current Government will collectively hit people with an annual £67bn tax bill at the start of the next decade. £54bn is due to the Conservatives, with the remaining £13bn due to this week’s Budget.

Liberal Democrat Treasury Spokesperson, Daisy Cooper MP, said:

“Rachel Reeves is the continuity Conservative chancellor. Just like Rishi Sunak and Jeremy Hunt before her, she is hammering voters with endless stealth taxes and hoping they won’t notice.

“This £67 billion stealth tax stitch up between the Conservatives and Labour is not just stifling our economy, it is undermining faith in our politics.

“People hoped this Labour government would deliver the change they’re crying out for, instead it’s just more of the same chaos and broken promises.”

ENDS

Notes to Editor:

The OBR revealed that Conservative and Labour stealth taxes will raise a combined £66.6bn a year in 2030-31 [Nov 2025 Economic & Fiscal Outlook, Table A, p71] https://obr.uk/efo/economic-and-fiscal-outlook-november-2025/

Full Commons Library research available here: https://docs.google.com/document/d/1z-yIf0qZu_ysAxvIkSCrB3UGsr9kydmh/edit#heading=h.rjf1ilmim374