UK (Parliament Politics Magazine) – British PM Keir Starmer says Labour keeps its manifesto despite record tax rises, insisting higher contributions are needed to fund the NHS and ease living costs.
As reported by Sky News, Labour leader Sir Keir Starmer defended the party’s manifesto record despite tax rises, urging everyone to contribute to public funding.
Following the announcement of a record-breaking tax-raising budget, the Prime Minister said the government had minimized the impact “in the least possible way” and had done so “fairly.”
What did Keir Starmer say about Labour’s tax rise?
Keir Starmer rejected allegations that the government had misled the public after last year’s pledge not to raise taxes again.
The Prime Minister repeatedly declined to admit breaking his manifesto pledge not to raise income tax, national insurance, or VAT for working people.
Mr Starmer said,
“We kept to our manifesto in terms of what we’ve promised. But I accept the challenge that we’ve asked everybody to contribute. I want to be really clear on why we’ve done that.”
The Labour leader added,
“That is because we need to protect our NHS, to make sure that it’s there for people when they need it and their families when they need it. Secondly, to make sure we’ve got the money to put into our schools. So every single child can go as far as their talent will take them. And the third thing is to bear down on the cost of living.”
Mr Starmer said,
“We are asking people to all make a contribution to this. We kept it to the minimum, but we’re really clear what that’s for.”
During an interview, when asked if he regretted raising taxes, the Prime Minister referenced the Office for Budget Responsibility’s productivity downgrade.
He argued,
“Their evidence was that the damage done by the last government was worse than they had anticipated, they have now set out their predictions. I am absolutely determined that we will beat those predictions.”
Asked about the possibility of further tax increases, the Labour leader declined to answer.
He responded,
“Well, we’ve done a lot to stabilise the economy. You’ve seen the headroom in the economy, and you’ve seen the market reaction to it. So, it’s clear that others think the right measures have been put in place.”
How did Keir Starmer defend scrapping the two-child benefit cap?
Sir Keir Starmer said the move to scrap the two-child benefit cap was not made “in the last few weeks or months.”
The Prime Minister faced questions on whether ending the two-child cap was meant to appease backbench MPs and protect his political standing, despite previously saying it was unaffordable and not in Labour’s manifesto.
Mr Starmer explained, “I absolutely do believe that we’ve got to lift children out of poverty.”
He said removing the cap would deliver “positives for thousands of children” and have a “massive impact” on families in need.
The Labour leader added,
“I’m not going to apologise for lifting half a million children out of poverty. I’m proud that this Labour government has done more on child poverty than any government has ever done.”
When challenged that the £26bn-plus tax hikes partly financed the sudden decision to scrap the cap, the Prime Minister rejected the claim.
Mr Starmer continued,
“This is not a decision of the last few weeks or months. I have said that from the get-go. It’s a moral mission. It is a personal mission. It is impossible to argue that this is a position that has been adopted just in the last few weeks. It’s been my long-standing ambition.”
How did Rachel Reeves respond to claims Labour broke its manifesto on taxes?
Chancellor Rachel Reeves declined to admit that Labour’s tax threshold freeze broke its manifesto promise to working people. This follows the Institute for Fiscal Studies’ claim that the Chancellor broke Labour’s manifesto commitments on taxation.
When questioned about Labour’s pledge not to raise taxes on workers, Ms Reeves said that the manifesto pledge specifically referred to the rates of income tax, national insurance, and VAT, saying, “And then we go on to list those taxes.”
The chancellor added,
“But I do recognise that yesterday, I have asked working people to contribute a bit more by freezing those thresholds for a further three years from 2028. I do recognise that that will mean that working people pay a bit more.”
When pressed again on whether Labour had broken its manifesto pledge not to raise taxes on working people, she replied,
“If you go on to read the next line, it talks about the rates, but I am not denying that this has an impact on working people.”
What is the two-child benefit cap?
The two-child benefit cap is a UK policy that restricts financial support through Universal Credit and tax credits to the first two children in most low-income households.
The cap affects many low-income families, including those where at least one parent is working. Official figures show it currently impacts 1.6 million children.
The UK government has announced that the cap will end from April 2026. This change is expected to lift an estimated 450,000 children out of poverty.
