Keir Starmer faced questions regarding the possibility of a tax increase in the upcoming Budget during a session of PMQs. The Prime Minister avoided confirming whether there would be a breach of the Labour Party’s pledge from the last General Election not to raise taxes for working individuals, including income tax, VAT, and national insurance.
When pressed by Conservative leader Kemi Badenoch on the commitment to the manifesto promises, Mr. Starmer deflected the question, stating that the government’s intentions would be disclosed at Chancellor Rachel Reeves’s Budget presentation on November 26. Despite previously reaffirming the manifesto vow, the Prime Minister emphasized that government plans are typically revealed during the Budget announcement.
Following PMQs, the Prime Minister’s spokesperson also refrained from reiterating the party’s previous stance on safeguarding working people from potential tax hikes, emphasizing that the Budget details were pending the Office for Budget Responsibility’s final forecasts.
Reports have surfaced suggesting that Chancellor Reeves is contemplating an increase in income tax to address a significant budget deficit. Options reportedly under consideration include adding a penny to the basic income tax rate, which could generate approximately £8 billion. There is also speculation that the Budget on November 26 may involve raising the higher rates of income tax, affecting individuals earning above certain thresholds.
The Treasury declined to comment on the speculation surrounding potential tax adjustments.
