Editorial: Chancellor's failure to rule out tax rises is grim news for everyone

​The refusal by the chancellor to rule out further tax rises is depressing news for businesses across the country, and will do little to instil confidence that the Burnham government means a change in direction.

John Healey wants to keep that option open thus far, but has promised to “balance the books” at the next Budget.

The Tories have branded the Labour minister “continuity Rachel Reeves” – and say he should have ended uncertainty by making clear his intent on tax rises. Speaking to the BBC, Mr Healey said he wants people to feel “confident about Britain and our future”.

The reality is that unless this country gets to grips with out of control public spending – particularly on welfare – the cost of borrowing is not going to come down. It is unlikely that this Labour government can deliver on tackling the benefits bill, as the parliamentary party simply won’t tolerate it.

The idea that workers and businesses could end up paying even more in tax to keep bankrolling the UK’s benefits culture is absurd. Yet there seems little political will to tackle the issue.

Of course it is about much more than benefits – it’s about the size of the state and how much we expect the government to do. Locally, we have almost unanimity at Stormont that the government should give local ministers more cash.

Even when the government tries to spend money here differently – as with the Local Growth Fund – there are howls of indignation at the idea anyone already getting might lose out.

If people really want lower taxes it will require a cultural shift away from the idea that the state must keep doing what it is doing now, and then some.

The focus should be on better key services we all need, and cutting taxes to make business and work worthwhile. ​​​​​​​