KEIR Starmer has pledged to stick with Labour’s self-imposed fiscal rules – despite dire warnings about the state of the economy.
The Prime Minister confirmed in the Commons on Wednesday that he stood by manifesto promises not to increase income tax, national insurance or VAT.
It comes despite recent warnings the UK Government will need to hike taxes in the autumn after cancelling planned cuts to the Winter Fuel Payment and disability benefits.
And official forecasters warned this week that state finances were facing “mounting risks” as a result of Labour’s tax policies and spending commitments.
Speaking at Prime Minister’s Questions, Starmer said he stood by promises not to hike taxes – but failed to rule out freezing income tax and national insurance thresholds, considered a way of taxing people more by stealth.
Tory leader Kemi Badenoch (below) said: “In their manifesto last year, Labour promised not to increase income tax, not to increase national insurance and not to increase VAT.
“Does the Prime Minister still stand by his promises?”
Starmer replied: “Yes.”
The opposition leader went on: “The Chancellor promised that she would lift the freeze on income tax and national insurance thresholds because in her words, they hurt working people. Is that still Government policy?”
The PM replied: “We are absolutely fixed on our fiscal rules. We remain committed to them.
“We remain committed to our budget, to our manifesto commitments. I realise that sticking to your fiscal rules and your manifesto commitments is a bit unfamiliar to the party opposite but it’s because of the decisions the Chancellor took, that this Government has taken, that we can update the House, £120 billion of inward investment into this country since we took office, business confidence at a nine-year high, that’s longer than the leader of the opposition has been in Parliament, Deloitte this week saying the UK’s now the best place to invest, creating 384,000 jobs.”
Badenoch said: “The whole house would have heard him fail to rule out freezing tax thresholds. He could say with the first question, he could promise, but he couldn’t this time round.”
