UK PM does not commit to tax pledges ahead of budget
British Prime Minister Keir Starmer has refused to fulfill his earlier promise not to increase taxes on workers ahead of next month’s budget, saying future forecasts will show the economy is in a worse shape than thought.
Economists have said Finance Minister Rachel Reeves may have to break the government’s promise and raise income tax, which would break Labor’s commitment to voters ahead of the 2024 election.
Conservative Party opposition leader Kemi Badenoch asked Starmer if he stood by his promise not to increase income tax, social security contributions or value-added sales tax.
Starmer said the government will announce its plans in the budget on November 26.
Badenoch said he gave a one-word “yes” answer when asked the same question in July.
Starmer said he would not announce budget plans in advance, but official forecasters’ expected decline in the UK’s productivity outlook represented a judgment on the Conservatives’ 14-year tenure.
“These figures are now emerging and confirm that the Conservatives are doing more damage to the economy than we previously thought,” Starmer said.
Britain’s budget watchdog is expected to cut its productivity forecast by 0.3 percent more than expected, people familiar with the situation said on Tuesday, potentially leading to a 20 billion pound ($40 billion) hit to public finances.
Reeves is believed to be considering a range of options to move towards his goal of balancing day-to-day spending with tax revenue by the end of the decade.
