Budget 2025: Keir Starmer refuses to say if he stands by pledge not to raise taxes

Sir Keir Starmer’s refusal to say whether he will stick to his manifesto promise not to raise taxes has fueled speculation that the government will backtrack on that commitment in next month’s Budget.

Conservative leader Kemi Badenoch asked the prime minister on Wednesday if he was sticking to his promise not to increase income tax, national insurance or VAT.

Chancellor Rachel Reeves faces the prospect of tax rises or spending cuts as she tries to balance the books in the November Budget.

Responding to Badenoch during Prime Minister’s Questions, the Prime Minister pointed out some economic figures and said, “The budget is on 26 November, we will put forward our plans.”

He added: “But I can now tell the House that we will build a stronger economy, cut NHS waiting lists and deliver a better future for our country.”

The Conservative leader said it was a different response to the one he received to a similar question in the summer, to which Sir Keir replied: “As he knows very well, no prime minister or chancellor will ever set out their plans.” He then attacked the Conservative Party’s economic records.

“The figures for the productivity review that’s being undertaken, that’s a decision on their record in the office,” he said.

“These figures are now emerging and confirm that the Conservatives are doing more damage to the economy than we previously thought.

“Now we will reverse this situation. In the first half of this year, we already achieved the fastest growth in the G7, made five consecutive interest rate cuts, and made trade agreements with the USA, the EU and India. They broke the economy, we are fixing it.”

The Institute for Fiscal Studies has warned that Ms Reeves may need to come up with £22bn of tax increases or spending cuts to regain the £10bn gap she left herself against debt targets in the spring.

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This gap is a result of higher borrowing costs, more persistent inflation and weaker growth, as well as spending commitments such as the partial reversal of the winter fuel payment cut and the watering down of welfare cut plans.

Britain’s bleak financial outlook has caused sterling to fall sharply this week; sterling fell to a two-and-a-half-year low against the euro and a three-month low against the US dollar; down 0.4 percent to 1.13 euros and down 0.4 percent to $1.32.

Don’t write Guard On Wednesday the chancellor argued that Brexit and the pandemic had left “deep scars” on the UK economy.

“Austerity policies, chaotic Brexit and the pandemic have left deep scars on the British economy that are still felt today. But the task facing our country as chancellor is not to re-litigation of the past or to allow the mistakes of the past to determine our future,” he said.

Ms Badenoch suggested cuts to welfare spending as an alternative to tax increases and said she offered to work with the government.

He told the House of Commons: “Last month I offered to work with him across parties to cut welfare spending, because he knows, and we know, that he would rather dip into people’s pockets than upset the people behind it. Instead of tax rises, will he work with us to cut welfare spending and get Britain working again?”