Keir Starmer is a 'working person', Rachel Reeves insists amid Budget tax row

25 October 2024, 17:05 | Updated: 25 October 2024, 17:49

Rachel Reeves insists Keir Starmer is a 'working person'

Keir Starmer is a working person, Rachel Reeves has insisted amid an ongoing row over the definition.

Speaking to LBC's Tom Swarbrick, Ms Reeves insisted that Sir Keir is a working person as he "goes out to work".

It comes amid an ongoing row over the definition of a "working person", after the PM repeatedly promised that they will not have their taxes increased in the upcoming Budget.

"The Prime Minister gets his income from going out to work and working for our country," she said.

Defending Labour's manifesto promise, she went on to say: "We made a clear commitment in our manifesto not to increase the key taxes that working people pay – National Insurance, income tax and VAT.

"Despite difficult circumstances, and the unfunded commitments of the previous government, I'm determined to stick to that manifesto commitment in the Budget next Wednesday."

The Chancellor will deliver Labour's first Budget on October 30 amid growing pressure to raise revenue and boost growth.

Ms Reeves said: "Everyone knows theres going to be difficult decisions in the Budget next week."

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When pushed on Sir Keir's suggestion that people who have shares are not 'working people', Ms Reeves told Tom: "People who go out and make their money through work are, by definition, working people and the key taxes that working people pay… they will not be rising."

She repeatedly insisted: "The key taxes that working people pay will not be going up in the Budget.

"That is a choice that I've made, it’s a commitment we made to the British people in our manifesto."

The PM's comments have been taken as an indication of where tax rises might come from in the Budget, as Labour seeks to plug a £22bn 'black hole' in the public finances.

The party have found themselves squeezed after repeatedly saying during the General Election campaign that they would not increase taxes on working people, including VAT, national insurance, and income tax.

Among the levies which are reportedly under consideration for a hike are capital gains tax, inheritance tax, and fuel duty.

Sir Keir has suggested that an increase in employer national insurance could be on the way too.