Keir Starmer opens door to Budget tax raid after inflation unexpectedly jumps to 3.6 per cent
The Prime Minister indicated they could be hit when pushed on how he would define a working person - with the Labour manifesto promising to protect them.
It comes as inflation unexpectedly rose to 3.6 per cent for June with petrol and food costs seen as driving factors.
Ministers in recent days have struggled to say who would escape tax hikes but Transport Secretary Heidi Alexander at the weekend said people on 'modest incomes' would be safe from hikes.
The PM, when asked what to explain a modest incomes, said: 'I think of the working people across this country who put in every day and don't get back what they deserve.
'That is who we are working for… the sort of people that work hard but haven't necessarily got the savings to buy themselves out of problems.'
Tory leader Kemi Badenoch said high taxes brought in such as the national insurance hike was the reason why the economy had shrunk.
Sir Keir said that his government was 'only just getting started' as he was pushed about decisions at the Budget this autumn.
Meanwhile, households could see the brakes put on interest rate cuts after inflation hit its highest rate for 18 months.
Petrol and food costs drove the unexpected hike to 3.6 per cent in June, up from 3.4 per cent the previous month, giving Bank of England chiefs a headache in turning around the sluggish economy.
Businesses and shops also pushed up prices after the £25 billion national insurance tax raid and the minimum wage hike came in from April.
Suren Thiru, of the Institute of Chartered Accountants in England and Wales, expects bank bosses to make a cut next month from 4.25 per cent.
Raising taxes will kill off growth, Reeves warned as she pledges to rip up business red tape
But she added that 'given mounting worries over economic conditions, these figures may increase caution over the pace of future rate cuts'.
The bank's target rate is 2 per cent.
The figures will pile more pressure on Chancellor Rachel Reeves as she attempts to balance the books amid global uncertainty of Donald Trump's global tariffs.
One area of concern is core inflation - which excludes energy and food costs - went up from 3.5 to 3.7 per cent in May, the Office of National Statistics said.
Ms Reeves said: 'I know working people are still struggling with the cost of living.'
She added that she would deliver to 'put more money into people's pockets'.
2
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
BBC News
18 minutes ago
- BBC News
Row over charges for public toilets in Malton
An argument over introducing charges to use a public toilet has the potential to damage plans to devolve services to lower tiers of local government, a councillor has Yorkshire Council had agreed to transfer the conveniences in Malton to the town council as part of what it has dubbed "double devolution".However, the deal has been described as a "busted flush" after the town council opted to introduce a 40p charge per use of the Market Place town's mayor has not commented on the issue, but it is understood the argument has meant the transfer deal is in danger of being cancelled. The deal would have seen the town council receive a one-off grant of £57,000 from the authority to pay for a refurbishment of the would have been the first transfer to a smaller town or parish council since the unitary authority was launched in the Local Democracy Reporting Service understands the deal is at risk due to concerns from the public over prompted the launch of a "free to pee" campaign by Keane Duncan, who represents the neighbouring town of Norton on North Yorkshire Council, with more than 1,500 people signing a petition against the at North Yorkshire Council's meeting on Wednesday, Duncan joked he had recently "spent an unhealthy amount of time outside Malton's public toilets".Duncan said the town council had agreed to the transfer "behind closed doors and without public consultation". 'Show respect' In a question to executive member for corporate services, Heather Phillips, Duncan added: "Has this toilet mess turned double devolution into double trouble - and a revolution in localism into a local revolt?"Doesn't it show that when you try to flush democracy down the pan, you may end up knee-deep in political sewage?"The chair of Malton Town Council and the town's mayor is North Yorkshire Council's independent member, Lindsay said the mayor had taken "a bit of a beasting" after details of the proposed fee for using the toilets emerged and urged people to "show respect and restraint" pointing out the decision was a "corporate" one made by the town is understood the transfer may be discussed by the town council at its next meeting on 30 July. Listen to highlights from North Yorkshire on BBC Sounds, catch up with the latest episode of Look North.
North Wales Chronicle
20 minutes ago
- North Wales Chronicle
Swinney to ‘turn heat up' on Westminster for indyref2 as part of new strategy
Writing in the National newspaper on Friday, the Scottish First Minister pledged to increase support for Scotland leaving the UK and stressed the importance of supporters of independence backing the SNP at next year's Holyrood election. Since the first vote in 2014, successive UK governments have repeatedly turned down calls for a second referendum, with the UK Supreme Court ruling in 2022 that only Westminster can allow another poll. The First Minister pledged to mobilise support around the calling of another vote, though Prime Minister Sir Keir Starmer is extremely unlikely to back down. The first point of the three-part plan outlined by Mr Swinney – who has been feeling some pressure since the SNP lost in June the Hamilton, Larkhall and Stonehouse by-election to up his push for independence – focuses on increasing support for leaving the UK. 'First, it will be a campaign designed to build the highest levels of support possible for independence as the best future for Scotland,' he wrote. 'I will be saying to those who voted Yes in 2014, and who have become independence supporters in the years since, that what they believed in then is just as valid today. 'They saw that Britain was fundamentally broken, that Westminster couldn't deliver on their dreams and aspirations, and what they saw has come to pass. And now it is time to do something about it. 'But I will also be urging people who were not persuaded of the merits of independence in 2014 to see the state of Britain today and take a different view.' Since taking over as SNP leader for the second time, Mr Swinney has stressed the need to increase consistent support for independence before a referendum can be pushed for, saying in a speech in January the idea has to become a 'compelling proposition' for Scots. The second point of his new plan, the First Minister said, is to put pressure on Westminster. 'Second, that means building public pressure around Scotland's fundamental national rights,' he wrote. 'The UK parties speak of a partnership of equals, but those are empty words if Scotland does not have the ability to determine her own future. 'We are ready to turn the heat up on Westminster and its anti-democratic stance, mobilising the support, energy and the impetus of people in Scotland behind the simple idea: no ifs, no buts, Scotland has the right to choose.' The third point of the strategy is to deliver an 'emphatic win' for the SNP in next year's Holyrood election. 'I want to persuade independence supporters that the way to deliver independence is only with an emphatic SNP win in 2026 and the priority is to do that now,' he wrote. 'History tells us that only when the SNP is doing well is there any prospect of advancing on Scotland's constitutional cause. 'During the next Parliament we reach the point where there will be one million people eligible to vote who, last time around, were too young to do so or not even born. A generation has now clearly passed. 'It's time for the one change that will actually make a difference for Scotland, for the fresh start our nation needs so badly. It's time for Scotland to craft her destiny by ensuring Scotland's future is in the hands of the people of Scotland.'
The Independent
20 minutes ago
- The Independent
Serious pollution incidents from water firms up 60% last year, watchdog says
The number of serious pollution incidents caused by water firms across England rose by 60% in 2024 compared with the previous year, the Environment Agency said. The watchdog revealed consistently poor performance from all nine water and sewerage firms in the country despite expectations for incidents to decrease. The Environment Agency assesses all pollution incidents from water firms into categories, with category 1 (major) and category 2 (significant) being the most serious, which can have a highly negative impact on wildlife, ecosystems and swimmers. Last year, 75 category 1 and 2 incidents were recorded, up from 47 serious incidents the previous year. Three water firms – Thames Water, Southern Water and Yorkshire Water – were responsible for 81% of the serious incidents, according to its findings. Thames Water was responsible for 33, Southern Water for 15 and Yorkshire Water for 13. Meanwhile, just two companies – Northumbrian Water and Wessex Water – had no serious incidents last year, meeting the Environment Agencies expectations to see a trend to zero pollution incidents by 2025. Overall, the watchdog said all pollution incidents increased by 29% with water companies recording 2,801, up from 2,174 in 2023. The watchdog said it was clear some companies are failing to meet its targets. It attributed the rise in incidents last year to persistent underinvestment in new infrastructure, poor asset maintenance, and reduced resilience because of the impacts of climate change. But it is understood the agency is still investigating the pollution incidents and their causes more closely to understand the major increase and decide on any action, particularly at Thames, which saw serious incidents double from 14 to 33. An increasing trend in pollution spills from pipes carrying wastewater uphill emerged last year, accounting for 20% of the serious incidents, the watchdog said, adding that these affected some protected waters for wildlife and swimming. The Environment Agency also carried out more inspections of firms last financial year at more than 4,000, meaning it also discovered more non-compliance from firms, with 24% of sites breaching their permits. Alan Lovell, chairman of the Environment Agency said: 'This report demonstrates continued systemic failure by some companies to meet their environmental targets. 'The water industry must act urgently to prevent pollution from occurring and to respond rapidly when it does. 'We have made significant changes to tighten our regulation of the water industry and ensure companies are held to account. With a dedicated larger workforce and increased funding, our officers are uncovering and acting on failures to comply with environmental law.' Environment Secretary Steve Reed called the figures 'disgraceful' and a 'stark reminder' of how underinvestment and weak regulation have led to sewage polluting England's waterways. 'In just one year, this new Government has banned unfair bonuses for polluting water bosses, brought in jail sentences for pollution, and secured £104 billion to upgrade crumbling sewage pipes – one of the biggest infrastructure investments in history,' he said. 'Next week the Independent Water Commission will recommend changes to strengthen the rules so we can clean up our rivers, lakes and seas for good.' James Wallace, chief executive of River Action, said the figures 'expose a brutal truth'. 'Serious pollution incidents are rising, sewage discharges remain rampant, and our rivers are spiralling toward ecological collapse,' he said. 'This is not just regulatory failure; it is a national disgrace.' Under the Water (Special Measures) Act introduced by the Government last year, the watchdog will have greater powers to take swift action against polluting companies. To boost funding for water regulation, the Environment Agency is also consulting on a new levy on the water sector to recover the cost of enforcement activities while the Environment Department (Defra) last week confirmed a 64% increase in its funding from 2023/2024.
