Keir Starmer has sparked cost-of-living terror for hardworking Britons after all-but confirming that the Chancellor will hike income tax at the Budget next month.
Tory leader Kemi Badenoch skewered the PM with a super simple question at PMQs this lunchtime, asking whether the PM could rule out the planned breach of Labour’s manifesto tax pledge.
Asked whether the pledge stands, the Prime Minister notably refused to answer the question.
Sir Keir replied: “The Budget is on the 26 November, 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.”
Responding, Ms Badenoch revealed that when she asked the exact same question about Labour’s tax pledges four months ago, 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.”
Sir Keir pivoted to blaming the Tories for his government’s flatlining economy and tax woes, insisting “no Prime Minister or Chancellor will ever set out their plans [ahead of a Budget”.
This answer sparked furious heckling from the opposition, as they noticed he had previously been willing to do exactly that.
Sir Keir continued: “I can say this Mr Speaker, the figures on the productivity review that’s being taken, this is a judgement on their record in office! Those figures are now coming through and they confirm the Tories did even more damage to the economy than we previously thought!”
Amid heckles of “apologise”, Sir Keir ploughed on: “We will turn that around. We’ve already delivered the fastest growth in the G7 in the first half of this year, five interest rate cuts in a row, trade deals with the US, EU and India. They broke the economy, we’re fixing it.”
Ms Badenoch accused Chancellor Rachel Reeves of leaking potential tax rises to see how they land with voters, which is causing “constant speculation around the Budget, which is damaging the economy.”
“The truth is they have no ideas.. they won’t rule out any tax rises, he won’t cut spending, he’s increasing unemployment.
“This man knows nothing about economic growth except how to destroy it!”
Rachel Reeves has been warned by Cabinet colleagues not to break Labour’s manifesto commitment as reports emerged she is considering a desperate emergency tax grab. The Chancellor is reportedly eyeing a stunning move to raise income tax in order to find £30billion to fill her latest fiscal black hole.
The Treasury is said to be considering adding 1p to the basic rate of income tax, which would raise around £8billion. Such a move would cost a British worker earning £35,000 over £220 a year, or £377 a year for anyone earning over £50,270.
While Labour’s election manifesto provided a cast-iron guarantee not to raise income tax, National Insurance or VAT, a Treasury source said: “There is a very live debate going on right now among those planning the Budget about how bold we want to be.”
A number of Cabinet ministers voiced fears that breaking the manifesto pledge would be panned by voters at a time Labour’s support is already plummeting.
A minister warned there would have to be a “very, very high threshold” for abandoning the pledge.