file photo

 

The prime minister has refrained from reaffirming Labour’s manifesto commitments to not raise key taxes at the forthcoming Budget. During Prime Minister’s Questions, Sir Keir Starmer did not echo earlier promises regarding income tax rates, VAT, or National Insurance. This omission has fuelled speculation of impending tax hikes, with Conservative leader Kemi Badenoch suggesting that Labour may be unable to control public spending effectively.

 

Background discussions have focused on the chancellor's potential need to break Labour's tax promises to address significant budget shortfalls. With the November 26 budget announcement looming, it is anticipated that Rachel Reeves will introduce tax increases fuelled by unfavourable economic forecasts and policy reversals that affect welfare cuts. Following firm declarations in July and September, where Sir Keir stood by tax promises, recent statements suggest a shift, with the government now focusing on laying out its fiscal plans next month.

 

Badenoch pointedly asked what had changed since Sir Keir’s definitive stance four months ago, leaving Labour’s intentions under scrutiny. A spokesperson for Sir Keir declined to restate the pre-Budget pledge, citing an inability to "pre-empt" financial announcements. Labour’s 2024 manifesto includes vows not to increase income tax, National Insurance, or VAT rates, yet the potential continuation of frozen tax thresholds beyond 2028 could push more taxpayers into higher bands.

 

As the Budget draws near, Labour insiders are advising Reeves to contemplate raising income tax as a strategic fiscal move, given its broad revenue potential and the time distance from the next general election. This suggestion, however, is fraught with concerns over breaking pre-election promises and potentially hindering economic growth amidst current vulnerabilities.

 

In response to earlier tax measure discussions, Reeves had enacted £40bn of tax rises, including increases to National Insurance for employers. Despite initial assurances against repeating this strategy, a revised economic outlook from the Office for Budget Responsibility, showing a £20bn gap in fiscal parameters, has reignited talk of further tax adjustments.

 

Sir Keir attributed some of the UK’s economic difficulties to prior Conservative policies, including Brexit and the mini-Budget of September 2022, though Badenoch dismissed these claims, accusing the prime minister of deflecting blame to justify financial policy changes.

 

 

Key Takeaways

 

• Starmer avoids confirming Labour's tax promises amid Budget pressure.
• Speculation increases over potential changes in fiscal planning.
• Internal Labour debates underscore economic and electoral concerns.

 

 

  Adapted by ASEAN Now from BBC 2025-10-30

 

 

The biggest retard ever to be P M and destroying the UK. 😡😡😡😡

Of course he'll raise them. Tax and spend. Labour 101.

 

His word is worth less than 1 Iranian Rial. 

 

He's only keeping Rachel from accounts around long enough to deliver the bad news before blaming and sacking her. The morals of an alley cat.

The very, very worst of a very, very bad bunch. I truly despair as to who will come next. Can't be any worse than the current bunch of charlatans but I'm not hoping for a vast improvement whoever comes next.

 

Still, I'd rather see Farage in the hot seat and Jim Davidson (yes, the ex 'comic') as his right hand man. Couldn't be any worse, could it?