The Prime Minister remained tight-lipped on a commitment not to extend the freeze on income tax thresholds ahead of next week’s announcement by the Chancellor
Sir Keir Starmer has not confirmed whether he will continue the freeze on income tax thresholds before the upcoming Spring Statement, despite pressure from Conservative leader Kemi Badenoch during Prime Minister’s Questions. During the Autumn Budget last year, Chancellor Rachel Reeves chose not to prolong the freeze on the income tax threshold levels, a move originally implemented by the previous Tory government until April 2028.
In the Commons, Mrs Badenoch accused Sir Keir of creating a financial deficit and pushed for assurances to shield hospices from any upticks in National Insurance contributions. On Wednesday, she challenged the Prime Minister, stating: “The Chancellor promised a once-in-a-parliament reset that she would not come back for more.
“And in that budget, she said there will be no extension of the freeze in income tax thresholds. Ahead of the emergency budget, will he repeat the commitment that she made?”
Responding, Sir Keir criticised the question format and countered with a dig at the Tories: “She’s got such pre-scripted questions, she can’t actually adapt them to the answers that I’m giving. I think she now calls herself a Conservative realist.
“Well, I’m realistic about the Conservatives. The reality is they left open borders and she was the cheerleader. They crashed the economy, mortgages went through the roof. The NHS was left on its knees, and they hollowed out the Armed Forces.”
He continued: “This Government has already delivered two million extra NHS appointments, 750 breakfast clubs, record returns of people who shouldn’t be here and a fully-funded increase in our defence spending. That is the difference that a Labour Government makes.”
After PMQs, a Tory spokesperson suggested “the only logical conclusion is that at next week’s emergency budget, Labour are plotting stealth taxes to drag more people into paying higher tax rates.” During the earlier part of the session, Mrs Badenoch challenged the necessity of an “emergency budget” following the Chancellor’s significant fiscal announcement, reports Plymouth Live.
In response, Sir Keir highlighted the Government’s economic achievements: “We have delivered record investment into this country, had three interest rates cuts in a row, and wages are going up faster than prices, which is a massive cost-of-living boost. That’s after only eight months, after 14 years of absolute failure.
“What did they do? Interest rates 11%, a massive £22 billion black hole in the economy. They crashed the economy, we’re rebuilding Britain.”
Mrs Badenoch then pressed further, saying: “He knows why we’re having an emergency budget because since the last one, since the Chancellor delivered her budget in October, growth is down, borrowing is up and she has destroyed business confidence. Does the Prime Minister now regret raising taxes on business?”
Sir Keir highlighted that the Office for Budget Responsibility (OBR) is set to reveal its figures after next week’s Spring Statement. He added: “I understand the leader of the Opposition is straight talking so perhaps she can help us with this, is she going to reverse the NICs (National Insurance contributions) increase?
“If not, what’s the point? If so, what other taxes is she raising to fill the hole?” In a sharp retort, Mrs Badenoch said: “The only black hole is the one he is digging. He’s shown absolutely no regret but everybody knows the Chancellor has made a mistake.
“That is why they’re having an emergency budget. Later today, Conservatives will vote to exempt hospices, pharmacies and care providers from her National Insurance rise.
“Will he, at the very least, support exempting these vulnerable services from his jobs tax?” Sir Keir responded by pointing out Mrs Badenoch’s avoidance of the issue: “I noticed she didn’t say they’re going to reverse the National Insurance rises.
“She wants all the benefits but they can’t say how they’re going to pay for it. She carps from the sideline, but can’t make her mind up whether she supports or doesn’t support National Insurance rises.
“We’ve made provision for hospices, we’ve made provisions for charities but we had to secure the economy, we had to fill the £22bn black hole that they disgracefully left.”
Mrs Badenoch light-heartedly suggested a role reversal, stating: “[If] they want me to answer questions, then we can swap sides.” She further commented: “I remember when he made that announcement, he’s forgotten because the money he is referring to for hospices is for buildings.
“It is not for the salaries hit by the job tax. As St Helena Hospice in Colchester said, ‘We cannot use this funding for salaries, which is where we need urgent help’.
“Why is the Prime Minister not listening to hospices?” In response, Sir Keir stated: “I have already set out the position in relation to hospices.
“She says that she wants to swap sides. I mean, heaven forbid – after 14 years of breaking everything, we’re getting on with the job of fixing it and all she can do is carp from the sidelines with absolutely no policy.”
