Prime Minister’s Refusal to Commit to Tax Promises
Prime Minister Sir Keir Starmer has refused to say he stands by Labour’s election promise not to increase income tax, national insurance or VAT. Asked by Tory leader Kemi Badenoch during Prime Minister’s Questions whether that commitment would be met in next month’s Budget, he said plans for the economy will be set then – on November 26.
Economic Plans
Sir Keir stated that the government will build a stronger economy, cut NHS waiting lists, and deliver a better future for the country. However, he did not provide a clear answer to the question about tax increases, citing that no Prime Minister or Chancellor would "ever set out their plans in front of a Budget".
Previous Commitments
Ms Badenoch pointed out that Sir Keir had given a different answer to the same question at PMQs on July 9, when he responded with a one-word answer: "Yes". She asked what had changed in the last four months, but Sir Keir reiterated that the government’s plans would be set out in the Budget.
Economic Record
Sir Keir attacked the Tories’ economic record during their 14 years in power, referring to reports that the UK’s official economic forecasting agency, the Office for Budget Responsibility (OBR), will downgrade the UK’s productivity performance. He stated that the Tories have done damage to the economy and that the government will change that, having already achieved the fastest growth in the G7 in the first half of the year.
Budget and Austerity
Sir Keir also said that there will be "no return to austerity… no return to the instability of their insane borrowing, and we will put an end to the injustice and low growth that have depressed the living standards of working people." The Chancellor, Rachel Reeves, has a significant black hole to fill, with the budget deficit potentially reaching up to £40 billion.
Government Commitments
After the Prime Minister’s statement, his spokesman was questioned by reporters and reiterated the government’s commitment to building 1.5 million new homes, getting young people into work, and reforming the planning system. The Chancellor has made it clear that the government needs to ensure it has the resources to fund public services and enable businesses to grow. The government is committed to growing the economy, as set out in the change plan.
