UK (Parliament Politics Magazine) – British PM Keir Starmer refuses to confirm if he will stick to his manifesto pledge not to raise taxes, ahead of Chancellor Rachel Reeves’ Budget.
As reported by The Independent, Keir Starmer has refused to confirm whether he will honour his manifesto pledge to avoid raising taxes, sparking speculation ahead of next month’s Budget.
During Wednesday’s session, Conservative leader Kemi Badenoch asked the Prime Minister if he would stick to his pledge not to raise income tax, National Insurance, or VAT.
What did Keir Starmer say in response to Kemi Badenoch on taxes?
Kemi Badenoch said,
“Last year, in its manifesto, Labour promised not to increase income tax, not to increase National Insurance and not to increase VAT. Does the Prime Minister still stand by his promises?”
Sir Keir Starmer responded,
“I’m glad the leader of the opposition is finally talking about the economy. Growth has been upgraded this year and the UK stock market is at an all-time high.”
He said,
“The Budget is on Nov 26 and we will lay out our plans. But I can tell the House now that we will build a stronger economy, we will cut NHS waiting lists and deliver a better future for our country.”
Ms Badenoch said,
“Well, well, well, what a fascinating answer. It is not the same answer I received when I asked exactly the same question word-for-word on Jul 9. Then, the Prime Minister replied with just one word, ‘yes’, and then he sat down with a smug grin on his face. What’s changed in the past four months?”
The prime minister replied,
“As she well knows no Prime Minister or Chancellor will ever set out their plans in advance. I can say this, because the figures on the productivity review that are being taken, this is a judgment on their record in office. Those figures are now coming through and they confirm that the Tories did even more damage to the economy than we previously thought. Now we will turn that around.”
Referring to Rachel Reeves, Ms Badenoch said,
“She’s been out there flying kites, causing constant speculation around the Budget that is damaging the economy. All week they’ve been briefing about tax rises. All we’ve heard is that he does not have a plan so we have some ideas for him.”
She added,
“On this side of the House, we believe in scrapping taxes on family homes. Yesterday, we voted to abolish stamp duty. They voted against it. Even the deputy prime minister or the former deputy prime minister who resigned in disgrace for not paying stamp duty voted to keep it. So I will remind them on this side of the house we know abolishing stamp duty is how we get young people on the housing ladder and keep the economy going. So why don’t we scrap this terrible tax?”
Mr Starmer asked,
“Why didn’t they do it then in 14 years in office?”,
adding,
“The productivity review figures are now coming in and they show the true extent of the damage that they did.”
He continued,
“We all know that austerity damaged the economy on their watch, the botched Brexit deal damaged the economy on their watch, Liz Truss’s mini-budget damaged the economy on their watch. We’ll take no advice or lectures on the economy. They won’t be trusted on the economy for generations to come.”
Ms Badenoch said the Tories had lowered debt every year, kept inflation at 2%, and left Labour with the fastest-growing G7 economy, a position now lost under their government.
She asked,
“There is another way to get growth. It is cutting welfare spending and getting people into work … Instead of tax rises, will he work with us to find a way to cut welfare spending and get Britain working again?”
The prime minister responded,
Sir Keir Starmer replied:
“They crashed the economy, inflation went up to 11 per cent, mortgages went through the roof, welfare spending went up £33 billion under them and they want to give us advice. And they reduced the UK to a laughing stock. Because of our Budget waiting lists have come down, wages are up, mortgage rates are down and other countries want to do deals with us.”
Speaking in the Commons, the Tory leader said Ms Badenoch launched the £8 billion deal with Turkey in January 2024, adding it is unrelated to the government’s Budget.
Ms Badenoch said the Chancellor borrowed £20 billion last month and accused him of refusing to rule out tax rises while failing to manage spending and unemployment.
She continued,
“In his weakness, he has caved in to the unions with their regulations that will cripple businesses, costing them £5 billion every year. Yes, please do speak up, because I want every single business out there to hear Labour MPs heckling when we talk about the damage that they are doing. So I ask the Prime Minister how on earth can he consider adding more burdens for these firms to deal with?”
The Labour leader said the UK’s economy has just been upgraded.
He stated,
“We’re not going to take lessons from them, she’s now introduced what I understand to be I think she calls it a golden economic rule, this golden rule that she’s now putting forward, very golden. £47 billion of unspecified spending cuts with no detail whatsoever.”
Mr Starmer added,
“That would be 85,000 fewer nurses, 234,000 fewer teachers or cutting every police officer in the country twice over. No wonder the Institute for Government said she’s on ‘shaky foundations’. That’s exactly what caused the Government in the first place.”
The Tory leader posted on X,
“Income Tax. VAT. National Insurance. Four months ago, the PM ruled out raising these taxes. Today, he won’t. Why? Because Labour’s high taxes and out-of-control spending have wrecked the economy, and they’re coming back for more. Nobody voted for this.”
Income Tax. VAT. National Insurance.
— Kemi Badenoch (@KemiBadenoch) October 29, 2025
Four months ago, the PM ruled out raising these taxes. Today, he won’t.
Why? Because Labour’s high taxes and out-of-control spending have wrecked the economy, and they're coming back for more. Nobody voted for this. pic.twitter.com/XEJlFubaVM
The Conservative leader suggested welfare cuts as an alternative to tax rises and said she had offered to work with the government.
She told the Commons,
“Last month I offered to work cross-party with him to bring down welfare spending, because he knows and we know that he’d rather dip into people’s pockets than upset the people behind him. Instead of tax rises, will he work with us to find a way to cut welfare spending and get Britain working again?”
How did Keir Starmer respond to Ed Davey on Brexit’s economic impact?
The Liberal Democrat leader, Sir Ed Davey, said the economic damage from Brexit is clear and questioned Prime Minister Keir Starmer on what action he will take regarding the deal.
Keir Starmer replied,
“He must have overlooked the fact that there was a UK-EU summit earlier this year in which there were 10 strands in relation to the change that we’ve already agreed in our relationship with the EU … That is an iterative process that we will continue next year.”
He added,
“But he’s absolutely right about the botched deal of the last government, the damage that’s done to our economy and we’re just seeing some of the figures coming through in relation to that. That’s one of the factors behind the way they crashed the economy.”
What did the Institute for Fiscal Studies say about Reeves’ budget challenge?
The Institute for Fiscal Studies has warned that Chancellor Reeves may face a £22 billion shortfall, requiring tax rises or spending cuts to restore the £10 billion headroom planned in the spring.
The gap is mainly due to rising borrowing costs, persistent inflation, weaker growth, and spending commitments, including partially reversing winter fuel payments and scaling back welfare plans.
What did Rachel Reeves say about Brexit and the economy?
Rachel Reeves said Brexit and the pandemic have left “deep scars” on the British economy.
She stated,
“Austerity, a chaotic Brexit and the pandemic have left deep scars on the British economy that are still being felt today. But the task facing our country – facing me as chancellor – is not to relitigate the past or let past mistakes determine our future.”
Ms Reeves has indicated that tax rises are possible, amid concerns over how to cover a potential £50 billion shortfall.
She said,
“The underpinning for economic growth is stability, and I’m not going to break the fiscal rules that we’ve set. We are going to reduce that primary deficit, we are going to see debt starting to fall as a share of GDP, because we need more sustainable public finances, especially in the uncertain world in which we live today.”
What is Brexit?
Brexit is the term for the “British exit” from the European Union, a political and economic union of 27 European countries. It followed a 2016 referendum where 51.9% of UK voters chose to leave the EU.
The UK officially left the EU on January 31, 2020, entering a transition period before fully establishing a new trade relationship.
The Office for Budget Responsibility estimates the UK economy is around 4% smaller than it would have been without leaving the EU.
