Prime Minister Sir Keir Starmer has sparked political controversy by refusing to rule out freezing income tax thresholds during his final Prime Minister's Questions before next week's crucial Labour Budget.
Tax Speculation Dominates PMQs
The Labour leader faced intense questioning from Conservative leader Kemi Badenoch, who labelled the upcoming fiscal announcement as "the first Budget to unravel before it's even been delivered." When directly pressed on whether he would maintain the government's manifesto commitment to unfreeze thresholds, Starmer remained evasive.
"The Budget is one week today and we will lay out our plans," Starmer told MPs. "I've said what we will do in terms of protecting the NHS and public services. What we won't do is inflict austerity on the country as they did. What we won't do is inflict a borrowing spree like Liz Truss did."
Conservative Criticism Intensifies
The Conservative Party immediately seized on Starmer's refusal to confirm threshold unfreezing, releasing a statement highlighting Chancellor Rachel Reeves's previous commitment. A Conservative spokesperson emphasised that Reeves had explicitly stated in her budget speech last year that extending the threshold freeze would "hurt working people" and constitute a breach of Labour's manifesto.
Badenoch accused Labour MPs of "speculating over their own party's Budget" for the past three months and noted that inflation has nearly doubled since Labour took office, despite October's fall to 3.6% providing some pre-Budget relief.
Commons Clashes and Comedy Moments
The PMQs session saw heated exchanges, including a notable intervention from Reform UK MP Lee Anderson, who accused the government of "dog whistle politics." His comments were met with laughter in the chamber, with one MP calling Anderson "the expert" in such matters.
Starmer responded to Anderson's challenge about local elections by quipping: "I didn't realise he's quite so good at stand-up comedy." The Reform MP had urged the Prime Minister to "be a man" regarding election scheduling, a remark that drew further amusement from MPs.
Meanwhile, Liberal Democrat leader Ed Davey used the session to push for a gambling tax, highlighting that Sky Bet plans to move to Malta to avoid UK corporation tax. The proposal, previously championed by former Labour Prime Minister Gordon Brown, is expected to feature in next week's Budget announcement.
Budget Scrutiny Reaches Fever Pitch
With just days remaining until Chancellor Rachel Reeves presents her first major Budget, the government faces mounting pressure over expected tax rises. Political analysts noted that Badenoch successfully focused on economic issues, with Starmer's references to Liz Truss's borrowing spree appearing increasingly weaker as the Budget approaches.
The Prime Minister did commit to tackling inequality in next week's announcement, telling Labour MP Jon Trickett that the government is "determined to tackle inequality" and that Reeves would deliver "a Budget based on Labour values."
However, with the Conservatives ready to pounce on any perceived breach of manifesto commitments, all eyes will be on the Treasury next week as Labour unveils its crucial financial plans amid growing economic uncertainty and political pressure.
