Prime Minister Keir Starmer has declined to rule out income tax increases in next month's budget, raising concerns that Labour may breach its manifesto pledge. During Prime Minister's Questions, Conservative leader Kemi Badenoch pressed Starmer on whether he still stood by the promise not to raise income tax, national insurance, or VAT.
Starmer avoided a direct answer, instead discussing economic growth and government plans. This contrasts with his response on 9 July, when he simply replied 'Yes' to the same question. Badenoch noted the change, asking what had happened in the intervening four months.
The Guardian has reported that Chancellor Rachel Reeves is considering income tax rises to address an estimated £30 billion shortfall. Starmer's press secretary declined to reaffirm the manifesto commitments, stating the government would not pre-empt the budget.
Some Treasury and No 10 advisers believe raising income tax may be necessary to avoid further tax increases later in the parliament. However, Reeves is reportedly concerned about the political fallout from abandoning the party's pledges, especially after breaking them to raise national insurance last year.
