Sir Keir Starmer has been under scrutiny for potentially misleading the public about tax increases for those who own shares and assets during the general election. Despite Labour’s promise not to raise taxes on working people, there has been confusion about who exactly falls under this category. Sky News’ political editor Beth Rigby questioned Starmer on whether individuals with income from assets like shares or property are considered working people, to which he responded that they wouldn’t fall under his definition.
This has raised concerns that the middle class might be targeted ahead of Chancellor Rachel Reeves’ budget announcement next week, with possible increases in capital gains tax, national insurance for employers, and inheritance tax. However, Starmer has denied these claims, stating that their focus in the budget is on fixing the foundations and addressing the £22bn black hole left by the previous government.
The Prime Minister emphasized the need to make tough decisions to rebuild the country and ensure that people’s living standards improve while maintaining essential public services like the NHS. Despite warnings of a painful budget with tax rises, Starmer insists that they were transparent about the necessary tax increases during the campaign and intend to keep their promises from the manifesto.
Both Starmer and Reeves have acknowledged that the upcoming budget will include difficult choices and increased taxes, with speculations about potential rises in capital gains tax. A Number 10 spokesperson clarified that individuals with some savings in stocks, shares, or an ISA are still considered working people, contrary to initial interpretations. The budget is scheduled for Wednesday, October 30th, at 12:30 pm.
As the budget approaches, the focus remains on how the government plans to address the economic challenges and deliver on their promises to the public. The discussions around tax increases and the definition of working people continue to generate debate and speculation. It will be crucial to see how the budget unfolds and the impact it will have on different segments of society. Stay tuned for more updates on the budget announcement and the reactions that follow.
