Prime Minister Keir Starmer has declared it is 'important that politicians stick to their word' during a tough interrogation on potential tax rises affecting working people, just days before the government's pivotal Budget announcement.
G20 Grilling on Tax Thresholds
Speaking to broadcasters at the G20 summit in Johannesburg, South Africa, the Prime Minister repeatedly declined to rule out extending a freeze on income tax thresholds. This policy is often labelled a 'stealth tax' because it can drag earners into higher tax brackets as wages increase, without the government explicitly raising tax rates.
This stance appears to conflict with previous warnings from his own Chancellor, Rachel Reeves. During last year's Budget, Reeves explicitly told MPs that extending the threshold freeze 'would hurt working people' and 'take more money out of their payslips.'
Manifesto Promises Under Scrutiny
The Labour Party's manifesto contained a clear promise not to raise several major taxes—including income tax, national insurance, and VAT—for working people. However, a continued freeze on the levels at which people start paying higher rates of income tax could effectively breach this pledge by increasing the tax burden for many.
When directly challenged on whether it is important for politicians to keep their promises, Mr Starmer affirmed the principle. "Yes it is important that politicians stick to their word," he stated. "They have to make decisions against a difficult backdrop and we've obviously got big decisions to make in the Budget that's coming in just a few days."
A Budget of 'Labour Values'
Despite avoiding specific tax commitments, the Prime Minister sought to reassure the public about the upcoming Budget's direction. In an interview with Channel 4 News, he promised it would be a 'Labour Budget with Labour values,' guided by the principle of fairness.
He outlined three core principles shaping the financial plan:
- Further protection for public services, with a particular emphasis on the NHS, where he noted waiting lists are 'beginning to come down.'
- The fundamental need to 'bear down and cut debt' for the health of the economy.
- A central focus on tackling the 'cost of living', which he identified as the number one issue for families across the country.
With the make-or-break Budget looming, the Prime Minister concluded that while difficult decisions are inevitable, he constantly has in his 'mind's eye people struggling with the cost of living.' The nation now waits to see how these words translate into policy next week.
