Prime Minister Keir Starmer has refused to rule out tax rises in next month’s budget, raising speculation that Labour may breach its manifesto promise not to increase income tax. During Prime Minister’s Questions, Conservative leader Kemi Badenoch pressed Starmer on whether he still stood by the pledge, which also covers national insurance and VAT.
Starmer gave a lengthy response focusing on economic growth and NHS waiting lists, but did not explicitly reaffirm the commitment. This contrasted with his answer on 9 July, when he simply replied “Yes” to the same question. Badenoch noted the change, asking: “What’s changed in the past four months?”
The Guardian reported earlier this month that Chancellor Rachel Reeves is considering raising income tax to fill an estimated £30bn shortfall in public finances. Starmer’s press secretary declined to repeat the previous position, saying: “We’re not going to pre-empt the budget.”
Some Treasury and No 10 advisers believe raising income tax may be necessary to ensure Reeves raises enough money to avoid further tax rises this parliament. However, Reeves is reportedly nervous about the political fallout from breaking such a major pledge, especially after she already broke a promise not to raise national insurance last year.
