Sir Keir Starmer denies waging 'war on Middle Britain' with budget

Sir Keir Starmer has denied misleading the public at the general election after hinting at tax rises for those who own shares and assets.

Labour’s election-winning manifesto promised it would not increase “taxes on working people” – but it did not make clear who exactly is considered a “working person”.

Asked by the political editor of Sky News Bet Rigby last week whether he would classify a working person as one whose income comes from assets such as shares or real estate, said the Prime Minister: “Well, they wouldn’t fall within my definition.”

It has led some critics to accuse the Prime Minister of targeting the middle class before the Chancellor Rachel Reeves’ budget next week due to possible increases in capital gains tax, employers’ national insurance or inheritance tax.

Questioned by Rigby at a press conference in Samoa for the Commonwealth At Saturday’s summit, Sir Keir denied he was “plotting a war against Central Britain”.

“What we’re doing is two things in the budget,” he said.

“The first is to fix the foundations, which is about the legacy we have, including the £22 billion black hole.”

The Prime Minister referred to Ms Reeves’ repeated claim that the Conservatives left the new government with a £22 billion deficit, forcing them to make “difficult decisions”.

“In the past, over the past fourteen years, leaders have ignored these issues and created fictions, and I am not willing to do that,” he added.

“And after we have laid the foundations, we will rebuild our country.”

He said this included “a very clear plan” to ensure that people across the UK are “better off”, that their “standards of living go up” and to ensure that people get the public services they are “entitled to”. to have and earn”.

He said part of the latest pledge was to “ensure our NHS is not only back on its feet but fit for the future”.

Asked whether he had misled the public during his campaign by failing to reveal that there would be significant tax increases in Labour’s first budget, Sir Keir said: “No, we were very clear about the tax increases that we would necessarily have to make up for.

“We were very clear in the manifesto and in the campaign that we would not increase taxes on working people and set out what we meant by that in terms of income tax, in terms of NICs (national insurance contributions) and in terms of social security. VAT, and we intend to deliver on the promises we made in our manifesto.”

Sir Keir and Ms Reeves have regularly warned the public that Labour’s first budget in 14 years will be “painful” and include “difficult decisions” – rhetoric the Prime Minister repeated on Saturday.

Rigby has predicted that taxes will rise further than what the Prime Minister said in the Labor manifesto.

But after interviewing him this week, a Number 10 spokesperson clarified that those with a small amount of savings in stocks, shares or an ISA are still considered a “working person” by the Prime Minister.

Instead, Sir Keir was talking about people who “primarily derive their income from assets”, they said.

Rigby said, ‘What does this all mean? Well, I think it could be that a capital gains tax increase is now planned.”

The budget will take place on Wednesday, October 30 at 12:30 p.m.