As Britain struggles with the cost of living crisis and the impact of tax changes on their finances, Prime Minister Keir Starmer has indicated that he currently has no plans to increase tax rates, but has left the door open for potential future increases.
Starmer’s statement came barely 24 hours after setting out six pledges for the coming year, including a promise to put more money in the pockets of working people.
During an interview on Friday, the Labour leader acknowledged that some decisions might not be popular, but voters can judge him at the next election based on whether their living standards have improved.
Starmer emphasized that it’s not his plan to have any more tax rises before the next general election, but he couldn’t rule them out in the event of “unforeseen” circumstances.
“I don’t want to suggest we’re going to keep coming back for more because that isn’t the plan… If you look at Covid and Ukraine, everyone knows there are things we can’t see now, but I can tell you we intended to do the tough stuff in that Budget, not keep coming back,” he explained.
When asked about the timeline for economic recovery, Starmer said improvements would be evaluated at the end of the parliament.
However, he expressed his desire for people to “feel better off straight away,” indicating a commitment to implementing changes that positively impact people’s finances as soon as possible adding that a pay rise for those on the lowest wages has already made three million people better off.
Starmer acknowledged that his popularity had fallen since July’s general election due to making tough decisions early on.
“I just don’t want to do what politicians have done in the past, which is to get in the warm bath of empty promises. I’m prepared to roll up my sleeves and tell people it’s tough – we’re going to do it, but you’re going to be better off,” he stressed.
Labour Chancellor Rachael Reeves announced a near-£70bn increase in public spending in October, with more than half coming from higher taxes.
Businesses will bear the brunt of the rises, including increased National Insurance contributions and capital gains tax on share sales.
Meanwhile, Conservative leader Kemi Badenoch criticized the PM’s new pledges, saying they showed Labour wasn’t “ready for government”.
