Latest news with #incomeTax
The Independent
09-07-2025
- Business
- The Independent
Starmer fails to rule out wealth tax to bolster bottom line
During a fiery PMQs, Keir Starmer confirmed there would be no increases to income tax, VAT, or employee National Insurance contributions. However, the prime minister refused to rule out the introduction of wealth taxes when pressed by Tory leader Kemi Badenoch. He also declined to commit to unfreezing income tax thresholds, despite the chancellor Rachel Reeves ' previous pledge to end the freeze after 2028. The government faces increased financial pressure following recent U-turns on disability benefits and winter fuel payments, creating a significant funding gap. The Conservative Party criticised the prime minister's stance, suggesting it indicates potential future tax rises including wealth taxes and an extended freeze on tax thresholds.
Yahoo
09-07-2025
- Business
- Yahoo
Starmer refuses to rule out wealth tax
Sir Keir Starmer has refused to rule out a wealth tax or say if he would extend a freeze on income tax and national insurance thresholds. Asked twice during Prime Minister's Questions if he could rule out a tax on the wealthiest, Sir Keir sidestepped the questions. Conservative leader Kemi Badenoch said he was "flirting with Neil Kinnock's demand for a wealth tax" after the former Labour leader called for one on Sky News' . Politics latest: Sir Keir dodged the question by saying his government has stabilised the economy, but was asked again by Green Party co-leader Adrian Ramsay if he would stand by his promise that "those with the broadest shoulders should carry the largest burden". The PM simply said: "We can't just tax our way to growth." Earlier this week, ministers and to rule out a wealth tax. PM dodges threshold freeze question The prime minister also avoided Ms Badenoch's questions about whether he would lift a freeze on income tax and national insurance thresholds. In her first budget last autumn, Chancellor Rachel Reeves said Labour would keep the thresholds frozen until 2028-29 = to when the Conservatives had frozen them to. But she said, after that, they would be uprated in line with inflation. Asked if that still stands, Sir Keir said Labour would "stick to our manifesto commitments". However, freezing thresholds was not in the party's manifesto. Freezing thresholds leads to fiscal drag, where more people pay higher levels of income tax because they are dragged into higher tax thresholds as their pay increases. Ms Reeves previously said, at the budget: "Extending the threshold freeze would hurt working people." Read more: PM will not raise income tax Sir Keir did confirm he would not raise income tax, national insurance or VAT. When asked by Ms Badenoch if he stood by his manifesto promise to not increase them, he said: "Yes." He also said the party is "absolutely fixed on our fiscal rules". This will make it difficult to raise more cash for public services - something the government desperately needs after a series of blistering U-turns that have resulted in savings being wiped out. The welfare bill went through last week but was so heavily watered down after dozens of Labour MPs threatened to rebel, it will no longer save the projected £5.5bn a year by 2030. At the beginning of June, Labour also largely reversed its cuts to winter fuel payments. It means instead of saving £1.4bn in 2024-25, rising to £1.5bn this year - the savings will only amount to £500m a year.
Sky News
09-07-2025
- Business
- Sky News
Starmer refuses to rule out wealth tax
Sir Keir Starmer has refused to rule out a wealth tax or say if he would extend a freeze on income tax and national insurance thresholds. Asked twice during Prime Minister's Questions if he could rule out a tax on the wealthiest, Sir Keir sidestepped the questions. Conservative leader Kemi Badenoch said he was "flirting with Neil Kinnock's demand for a wealth tax" after the former Labour leader called for one on Sky News' Sunday Morning With Trevor Phillips. 2:19 Sir Keir dodged the question by saying his government has stabilised the economy, but was asked again by Green Party co-leader Adrian Ramsay if he would stand by his promise that "those with the broadest shoulders should carry the largest burden". The PM simply said: "We can't just tax our way to growth." Earlier this week, ministers and Sir Keir's spokesman also refused to rule out a wealth tax. 1:51 PM dodges threshold freeze question The prime minister also avoided Ms Badenoch's questions about whether he would lift a freeze on income tax and national insurance thresholds. In her first budget last autumn, Chancellor Rachel Reeves said Labour would keep the thresholds frozen until 2028-29 = to when the Conservatives had frozen them to. But she said, after that, they would be uprated in line with inflation. Asked if that still stands, Sir Keir said Labour would "stick to our manifesto commitments". However, freezing thresholds was not in the party's manifesto. Freezing thresholds leads to fiscal drag, where more people pay higher levels of income tax because they are dragged into higher tax thresholds as their pay increases. Ms Reeves previously said, at the budget: "Extending the threshold freeze would hurt working people." PM will not raise income tax Sir Keir did confirm he would not raise income tax, national insurance or VAT. When asked by Ms Badenoch if he stood by his manifesto promise to not increase them, he said: "Yes." He also said the party is "absolutely fixed on our fiscal rules". This will make it difficult to raise more cash for public services - something the government desperately needs after a series of blistering U-turns that have resulted in savings being wiped out. The welfare bill went through last week but was so heavily watered down after dozens of Labour MPs threatened to rebel, it will no longer save the projected £5.5bn a year by 2030. At the beginning of June, Labour also largely reversed its cuts to winter fuel payments. It means instead of saving £1.4bn in 2024-25, rising to £1.5bn this year - the savings will only amount to £500m a year.
BBC News
09-07-2025
- Business
- BBC News
Starmer refuses to rule out extending freeze on tax thresholds
Sir Keir Starmer has refused to rule out extending the freeze on tax thresholds, which has seen millions of people dragged into paying higher rates. The freeze on National Insurance (NI) and income tax thresholds, introduced under the Conservatives, is currently due to end in April asked during Prime Minister's Questions whether the government still planned to lift the freeze, Sir Keir only said he was committed to Labour's election manifesto. This included a pledge not to increase National Insurance (NI), income tax or VAT - but no specific promise on thresholds. Government U-turns on cutting disability benefits and winter fuel payments for pensioners have piled pressure on the government's spending plans, with economists saying tax rises are now likely in the autumn major concessions on the government's flagship benefits plan, potential savings of around £5bn will now be delayed or lost entirely. Tax thresholds - the income levels at which people start paying NI or income tax, or have to pay higher rates - typically increased every year in line with inflation. However, income tax thresholds have been frozen since 2021/22. This means people risk being dragged into a higher tax band, or paying tax on their income for the first time, if they get a pay the freeze until 2029/30 could raise an estimated £7bn a year. In her Budget speech last autumn, Chancellor Rachel Reeves said extending the freeze "would hurt working people" and pledged to lift thresholds in line with inflation again from 2028/29. However, asked by Conservative leader Kemi Badenoch if this was still government policy, Sir Keir did not rule out continuing the freeze. "No prime minister or chancellor is going to write a Budget in advance. We are absolutely fixed on our fiscal rules. We remain committed to them," he told the Commons."We remain committed to our Budget, to our manifesto commitments."The PM's answer contrasted to his previous response to Badenoch, when asked if he stood by Labour's promise not to increase income tax, NI or VAT. His reply to this was simply: "Yes."The government's self-imposed fiscal rules include not borrowing to fund day-to-day spending and to get government debt falling as a share of national income by 2029/29. The rules are designed to reassure financial markets but sticking to them limits the government's options and makes tax rises more likely. Sign up for our Politics Essential newsletter to read top political analysis, gain insight from across the UK and stay up to speed with the big moments. It'll be delivered straight to your inbox every weekday.
The Sun
09-07-2025
- Business
- The Sun
Fears of £8bn stealth income tax raid as Keir Starmer fails to rule out ANOTHER Budget U-turn
SIR Keir Starmer has today refused to rule out a stealth income tax hike that would hit millions of Brits. The Prime Minister would not commit to lifting the freeze on income tax thresholds or national insurance. 2 2 It means millions more Brits could be forced into paying a higher rate of tax under fiscal drag. This is when people are pulled into higher income tax brackets as inflation pushes their wages up. It would be yet another Labour U-turn after Chancellor Rachel Reeves said at last year's Budget that failing to unfreeze would "hurt working people". The PM insisted he was standing by Labour's manifesto pledge not to raise VAT, income tax or national insurance. But he failed to commit to lifting the income tax freeze in 2028, at Wednesday's PMQs. Tory leader Kemi Badenoch accused him of folding in every negotiation and slammed him as "weak" in his dealing with striking doctors. She asked: "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?' Sir Keir replied: 'We are absolutely fixed on our fiscal rules. We remain committed to them." Ms Badenoch said this would hit the poorest pensioners who would be dragged into income tax for the first time ever. She applied the thumb screws: "Does the Prime Minister think it is right that struggling pensioners should face a retirement tax?' Sir Keir insisted they would stick to their manifesto commitments and fiscal rules. And he said no PM would write the Budget in advance. ANOTHER LABOUR U-TURN? Chancellor Rachel Reeves said at the last Budget extending the threshold freeze would "hurt working people". She told the Commons: "Having considered this issue closely, I have come to the conclusion that extending the threshold freeze would hurt working people. "It would take more money out of their payslips. I am keeping every single promise on tax that I made in our manifesto. "So there will be no extension of the freeze in income tax and National Insurance thresholds beyond the decisions of the previous government. " She promised that Labour would protect working people "every single time" when it comes to tax decisions. It comes after Labour's U-turn on welfare left the Chancellor struggling to plug a £5bn black hole. This comes on top of £1.5 billion she needs to find to pay for Labour's winter fuel U-turn. A Tory Party spokesman said: 'The PM wouldn't repeat the promise his Chancellor made in the autumn to lift the freeze on income tax thresholds. "He also refused to rule out a retirement tax and wealth taxes. "The only reasonable conclusion is that a toxic cocktail of Labour tax rises are coming in the autumn budget.'
