Starmer refuses to rule out extending freeze on tax thresholds | EUROtoday
Political reporter

Sir Keir Starmer has refused to rule out extending the freeze on tax thresholds, which has seen thousands and thousands of individuals dragged into paying larger charges.
The freeze on National Insurance (NI) and earnings tax thresholds, launched below the Conservatives, is at present as a result of finish in April 2028.
But requested throughout Prime Minister’s Questions whether or not the federal government nonetheless deliberate to carry the freeze, Sir Keir solely mentioned he was dedicated to Labour’s election manifesto.
This included a pledge to not improve National Insurance, earnings tax or VAT – however no particular promise on thresholds.
Tax thresholds – the earnings ranges at which individuals begin paying National Insurance or earnings tax, or should pay larger charges – sometimes elevated yearly in keeping with inflation.
However, earnings tax thresholds have been frozen since 2021/22.
This means folks threat being dragged into the next tax band, or paying tax on their earnings for the primary time, in the event that they get a pay rise.
Extending the freeze till 2029/30 might elevate an estimated £7bn a yr.
In her Budget speech final autumn, Chancellor Rachel Reeves mentioned extending the freeze “would hurt working people” and pledged to carry thresholds in keeping with inflation once more from 2028/29.
However, requested by Conservative chief Kemi Badenoch if this was nonetheless authorities coverage, Sir Keir didn’t rule out persevering with 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 advised the Commons.
“We remain committed to our Budget, to our manifesto commitments.”
The PM’s reply contrasted to his earlier response to Badenoch, when requested if he stood by Labour’s promise to not improve earnings tax, National Insurance or VAT.
His reply to this was merely: “Yes.”
The authorities’s self-imposed fiscal guidelines embrace not borrowing to fund day-to-day spending and to get authorities debt falling as a share of nationwide earnings by 2029/29.
The guidelines are designed to reassure monetary markets however sticking to them limits the federal government’s choices and makes tax rises extra seemingly.
Badenoch additionally accused Sir Keir of “flirting” with the thought of a wealth tax – one thing some Labour MPs on the left of the occasion have known as for.
Supporters of the thought say a brand new 2% tax on belongings price greater than £10m might elevate £24bn per yr.
However, critics argue such a transfer might see rich people go away the nation.
Badenoch advised the Commons: “Let’s be honest about what that means, this is a tax on all of our constituents’ savings, on their houses, on their pensions, it would be a tax on aspiration.”
Asked if he would rule out a wealth tax, Sir Keir mentioned Labour had stabilised the economic system and “don’t need lessons” from the Conservatives.
Pressed once more on whether or not he would introduce a wealth tax by Green MP Adrian Ramsay, who recommended “those with the broadest shoulders should carry the largest burden”, Sir Keir mentioned: “We can’t just tax our way to growth.”

https://www.bbc.com/news/articles/cvg1p1pwxn6o