PM Starmer insists tax rises were clear in manifesto

PM Starmer insists tax rises were clear in manifesto
Credit: Stefan Rousseau/PA Wire

London (Parliament Politics Magazine) – PM Keir Starmer has rejected misleading the public over tax increases in the run-up to the general election.

Sir Keir Starmer was asked if he had misled voters by not cautioning them about the billions in tax rises anticipated in the Government’s first Budget, the Prime Minister stated: “No, we were very clear about the tax rises that we would necessarily have to make whatever the circumstances.

“We were clear in the manifesto and in the campaign that we wouldn’t be increasing taxes on working people, and spelt out what we meant by that in terms of income tax, in terms of NICs and terms of VAT, and we intend to keep the promises that we made in our manifesto.” It has been noted that Rachel Reeves, the Chancellor, is preparing to impose a £20 billion National Insurance growth on employers.

What does Starmer define as a “working person”?

Labour had promised in its manifesto to not increase taxes on what it defined as “working people,” explicitly ruling out expansions to VAT, national insurance, and income tax. He was asked to explain the term, Sir Keir expressed it was someone who “goes out and earns their living, usually paid in a sort of monthly cheque” and who cannot “write a cheque to get out of difficulties”.

how does Starmer plan to address the £22 billion deficit?

When he spoke to journalists at the end of the Commonwealth heads of government summit in Samoa, the Prime Minister was questioned whether he was “plotting a war on middle Britain”.

“No. Let me clear about that,” he stated. “What we’re doing is two things in the Budget. The first is specifying the foundations, which deal with the inheritance that we’ve got, including the £22 billion black hole. We have to deal with that. In the past, leaders have walked past those problems and created fictions, and I’m not prepared to do that. Controversy has been growing over what defines a “working person”.

How might capital gains tax changes affect landlords and investors?

Sir Keir stated earlier this week that he does not think people who have an income from assets such as shares or property are working people, heightening fears of tax rises on landlords and investors. In a partisan climbdown on that role, Downing Street clarified that those who hold a small portion of savings in stocks and shares still counted as working people.

Reports indicate capital gains tax, inheritance tax and fuel duty are among the levers she will pull to increase revenue as she aims to put the economy on a firmer footing. Ms Reeves has revealed she will raise some taxes, pointing to a £22 billion black spot in the public finances which she says she found had been left behind by her Tory predecessors after entering office but has not identified which ones.

Federica Calabrò

Federica Calabrò is a journalist at Parliament News, She is covering Business and General World News. She is a native of Naples, commenced her career as a teller at Poste Italiane before following her passion for dance. Graduating in classical dance, she showcased her talents with two entertainment companies, enchanting audiences throughout Italy. Presently, Federica serves as the general secretary at the Allianz Bank Financial Advisors financial promotion center in Naples. In this capacity, she manages office forms, provides document assistance for Financial Advisors, oversees paperwork for the back office, and ensures smooth customer reception and assistance at the front office. Outside her professional obligations, Federica indulges in her passion for writing in her leisure time.