The Prime Minister was grilled over whether Labour had failed to spell out the extent of their plans in the manifesto, where the party promised not to raise taxes on working people
Keir Starmer has denied misleading voters over the scale of tax rises expected to come in next week’s Budget.
The Prime Minister was grilled over whether Labour had failed to spell out the extent of their plans in the manifesto, where the party promised not to raise taxes on working people.
It specifically ruled out hikes to VAT, income tax and national insurance for “working people”.
But Rachel Reeves is believed to be planning £40billion of tax rises and spending cuts in the Budget to fix the economic mess left by the Tories and to avoid fresh austerity.
The Chancellor is poised to hike taxes on businesses by increase national insurance contributions for employers
Ms Reeves is also said to be considering extending the freeze on income tax thresholds, which means Brits can be pushed into paying income tax or higher tax bands by inflation.
Asked if he had misled voters by not warning them about the billions in tax rises expected in his government’s first budget on Wednesday, the PM said: “No, we were very clear about the tax rises that we would necessarily have to make whatever the circumstances.
“We were really 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 (national insurance contributions) and in terms of VAT, and we intend to keep the promises that we made in our manifesto.”
But despite his recent warnings about pain in Budget, Mr Starmer said there was cause for optimism.
He said: “We are fixing the foundations, which is tough, but we’re doing it for a purpose.
“And that is because I believe very strongly that if we fix the foundations, take the tough decisions, scrub it down, make sure that our economy is on a very stable footing – which is what it will do – that is the best platform for rebuilding the country.”
The PM said voters would judge him on whether they are better off under Labour – and singled out the NHS as a key priority.
He added: “It is also about fixing our public services and building the Britain that people are entitled to and deserve.”
