Rachel Reeves has insisted she will not resign if she hikes taxes in her Budget. The Chancellor laid the groundwork for more tax rises in an unprecedented speech on Tuesday ahead of her statement later this month.

Pressed on LBC’s Tonight with Andrew Marr if she would quit if she announces a tax increase, Ms Reeves said she was appointed to “turn our economy around” and added that she was “absolutely determined to finish that job”. She said: “And what do you think would happen in financial markets if I did that?”

Ms Reeves added: “I have been able to build a reputation and have been trusted with the public finances, I’ve steered our economy through some challenging times in the last 15 months – increases in global tariffs, increases in volatility, increased tensions around the world – and yet our bond yields are lower than they were a few months ago, and have outperformed our peers.

“The FTSE is close to record highs. Our economy in the first half of this year was the strongest-growing in the G7.

“So I am not going to walk away because the situation is difficult. I was appointed as Chancellor to turn our economy around, and I’m absolutely determined to finish that job.”

The Tories have called for Ms Reeves to quit if she increases taxes on November 26.

Elsewhere during the interview, the Chancellor denied her Budget would be as bad as the 2024 statement, when she unveiled a £40billion tax raid.

But she refused four times to rule out raising taxes in her upcoming statement.

Ms Reeves was also asked if she believed the Government would ever regain the trust of voters if she breaks Labour’s manifesto pledge not to raise income tax, National Insurance, or VAT.

She said: “I think people want to understand what we’re doing and why. People voted Labour last year because they were sick to the back teeth of the previous government and their mismanagement and them putting party interest above the national interest.”

It comes after the Chancellor declared that “we will all have to contribute” to securing the country’s economic future in her Downing Street address.