People will not face higher taxes on their payslips after budget, education secretary says
People will not face higher taxes on their payslips after the budget, a cabinet minister said, as she refused to be drawn on what measures could be in the £40bn revenue raiser.
Education Secretary Bridget Phillipson repeatedly said she could not speculate on how Chancellor Rachel Reeves intends to fill the black hole in the nation’s finances, which is understood to be more than double it was previously thought.
Politics Live: Budget a ‘choice between investment or decline’
Labour said in its manifesto that it will not raise national insurance, income tax or VAT on “working people” – but it is not clear exactly who that means.
Ms Phillipson told Sky News it is someone “whose main income arises from the fact that they go out to work every day”.
However, she refused to say whether it meant someone who does this and also has savings, telling Sunday Morning With Trevor Phillips: “You’re once again asking me to speculate on matters that are for the chancellor.”
She added: “We set out in our manifesto that we would not be increasing VAT, national insurance or income tax on working people. We will hold to that. And in the payslips that they see after the budget, they will not face higher taxes.”
Government sources were later forced to clarify that the promise was valid right up to the next election, after the education secretary appeared to fumble her lines on the matter.
There was further confusion over remarks she gave to the BBC’s Sunday With Laura Kuenssberg programme, when she declined to say whether a small business owner with an average net profit of around £13,000 is considered a “working person” by the government.
She acknowledged it is “frustrating” she can’t talk about the budget, but said “that’s not my job – that’s for the chancellor”.
While ministers have remained tight-lipped about the fiscal event next week, it is thought capital gains tax, fuel duty and inheritance tax are some of the levers Ms Reeves could pull.
In recent weeks, ministers have said their commitment not to raise national insurance only applied to the worker element, fuelling speculation that the employer part of this levy could also go up.
It has emerged the government is looking to fill a £40bn shortfall, more than double the £22bn black hole they had previously warned about and used to justify the cut to winter fuel payments.
Paul Johnson, director of the Institute for Fiscal Studies, told Sky News if that is the case Wednesday’s fiscal event will be “certainly one of the biggest tax rising budgets in history”.
The Conservatives have accused Labour of misleading the public during the election campaign with their economic plans.
Gareth Davies, the shadow exchequer secretary, said: “Labour are not keeping their word. They’re attempting to pull the wool over the public’s eyes – but it won’t work.”
He accused Labour of breaking their manifesto promises not only by raising taxes but also by “fiddling the figures to whack up borrowing” despite vowing not to change their fiscal rules.
Please use Chrome browser for a more accessible video player
UK’s black hole is ‘genuinely big’
Read more:
‘Working people’ and Labour’s muddle with messaging
Sir Keir Starmer says those with assets are ‘not working people’
It comes after Ms Reeves confirmed that she will change her definition of debt to allow her to borrow more to invest.
Speaking to Sky News earlier this week, she said the self-imposed fiscal rule under which borrowing must be falling by the fifth year of economic forecasts will be redefined from the current measure of public sector net debt.
Please use Chrome browser for a more accessible video player
Former Bank of England governor looks ahead to budget
Former Bank of England governor Mervyn King warned the move could lead to people’s grandchildren shouldering the burden of national debt in the years to come, and Ms Reeves should “demonstrate how that higher borrowing in the short term is going to be constrained in the future”, such as through higher taxes.
He advised Ms Reeves to be “open and honest” about what the higher borrowing will deliver because “it’s the merits of the spending that will determine whether or not people are willing to accept higher taxes in order to see the benefits”.
Wyoming has become the latest US state to propose a bill for a Strategic Bitcoin Reserve, just days before Donald Trump’s US presidential inauguration.
When Nigel Farage’s Reform UK is just one point behind you in the opinion polls, the last thing you want to be reminded about is Brexit.
If you’re Sir Keir Starmer, that is.
No doubt Poland’s prime minister, Donald Tusk, was trying to be friendly. After all, as Sir Keir said, they share a passion for Arsenal Football Club.
But when Mr Tusk declared at their joint news conference in Warsaw that his dream was “instead of a Brexit, we will have a Breturn”, Sir Keir visibly cringed.
Was it an ambush? Not quite. But it was certainly awkward for the UK prime minister. He stood stiffly and didn’t respond, not once uttering the word “Brexit”.
Mr Tusk, however, has form for bemoaning Brexit. He was, after all, the president of the European Council when the UK voted to leave the EU in 2016.
He might now be in his second spell as Poland’s PM, but his five years at the EU make him the ultimate Brussels insider, who’s never made any attempt to hide his feelings on Brexit.
Prior to the UK referendum, in September 2015, he said Brexit “could be the beginning of the destruction of not only the EU but also of western political civilisation in its entirety”.
His most outspoken attack on the UK’s Eurosceptics came in 2019 when the-then prime minister Theresa May was struggling to get a deal. He spoke of “what the special place in hell looks like for those who promoted Brexit“.
Sir Keir also visited Ukraine on his trip to Eastern Europe. Pic: PA
Standing alongside Sir Keir, he revealed that “for obvious reasons” they discussed co-operation between the UK and the EU. He recalled that his emotional reaction to the referendum in 2016 was “I already miss you”.
He went on: “This is not just about emotions and sentiments – I am aware this is a dream of mine, that instead of a Brexit we will have a Breturn.
“Perhaps I’m labouring under an illusion. I’d rather be an optimist and harbour these dreams in my heart – sometimes they come true in politics.”
Read more:
Badenoch says Tories made ‘mistakes’ on Brexit
Labour MPs told to back EU youth mobility scheme
A dream? Or a calculated move? As a Brussels insider, was Mr Tusk speaking for the EU as a whole? Was he doing Brussels’ bidding?
He may have returned to lead his homeland, but he remains a key player in Brussels.
On becoming Poland’s PM in 2023, he ended a dispute with Brussels which unlocked billions of frozen EU funds for his country.
He also orchestrated the return of his centre-right ally Ursula von der Leyen as European Commission president.
And Poland has just taken over the rotating presidency of the EU, which means Mr Tusk will be hugely influential once again, chairing meetings and setting agendas.
👉 Click here to listen to Electoral Dysfunction on your podcast app 👈
Poland is back in the European mainstream. It’s where Mr Tusk would like the UK to be as well.
It’s where, privately, Sir Keir would like the UK to be. It’s just that with Reform UK almost neck and neck with Labour in the polls, he daren’t say so.
Poland’s prime minister has said he hopes for the “Breturn” of the UK as a member of the European Union – as he discussed a defence treaty with Sir Keir Starmer.
Donald Tusk, who was hosting the prime minister for discussions on a UK-Polish defence pact in Warsaw, said it was his “dream” that “instead of a Brexit, we will have a Breturn”.
Standing alongside Sir Keir at a joint news conference, the Polish premier also said he had discussed greater cooperation between the UK and the EU.
Mr Tusk, who was the president of the European Council during the years that Britain left the EU, said: “For obvious reasons, we also discussed another issue, the cooperation between Great Britain and the European Union.
Politics latest: Reform and Tories ‘desperate’ in approach to Trump
“I’m sure you will recall when we learned about the results of the Brexit referendum. I was head of the European Council… at that time. My first emotional reaction was to say: ‘I already miss you.’
“I remember our press briefings as if it was yesterday. I already miss you, that’s what I said.”
He added: “This is not just about emotions and sentiments – I am aware this is a dream of mine, that instead of a Brexit we will have a Breturn.
“Perhaps I’m labouring under an illusion. I’d rather be an optimist and harbour these dreams in my heart – sometimes they come true in politics.”
Sir Keir, who held the role of shadow Brexit secretary while Labour was in opposition and backed remain in the 2016 referendum, has repeatedly ruled out rejoining the customs union or single market.
He has, however, said he wants to deepen post-Brexit ties with Brussels
Mr Tusk was speaking after Sir Keir travelled to Poland to discuss a defence pact with the NATO ally – which Mr Tusk said he hoped would be ratified “this year”.
The new treaty is designed to protect Europe from Russian aggression, tackle people-smuggling gangs, and combat misinformation and cyber threats.
Sir Keir was also asked whether the UK’s attendance at a defence summit in Poland earlier this week meant he was in favour of “creating an army” for Europe – to which he replied he was not.
Asked about the E5 defence ministers meeting in Warsaw and whether he supported creating a common European army, Sir Keir said: “The meeting that happened the other day is vitally important. That isn’t about creating armies.
“It’s about how we share our security concerns and build on what we’ve already got.”
Sir Keir Starmer and his wife Victoria Starmer visit the Memorial And Museum Auschwitz-Birkenau. Pic: Reuters
As part of the defence pact, a £4bn partnership for new air defence systems in Poland has been agreed. The project will be headquartered in Bristol.
“The UK has secured £8bn of defence deals in Poland over the last three years alone, and we’re going further today, opening a new joint programme office in Bristol to deliver our £4bn partnership, to deliver the next generation of air defence systems to Poland,” he said.
He added: “We share an unbreakable commitment to NATO and an unbreakable commitment to Ukraine.”
During his visit to Poland, Sir Keir also made his first visit to Auschwitz, which he described as “utterly harrowing”.
The prime minister visited the former Nazi concentration camp, where he laid a wreath ahead of the 80th anniversary of its liberation.
After he and his wife Victoria, who is Jewish, visited the site, Sir Keir said: “Nothing could prepare me for the sheer horror of what I have seen in this place. It is utterly harrowing.
“The mounds of hair, the shoes, the suitcases, the names and details, everything that was so meticulously kept, except for human life.”
Sir Keir Starmer and his wife Victoria Starmer visit the Memorial And Museum Auschwitz-Birkenau. Pic: Reuters
Read more:
MP Mike Amesbury admits punching man
Plan for government-backed local grooming gangs inquiries
His visit to Poland came following a surprise trip to Kyiv on Thursday, where he reiterated his support for Ukraine and suggested that British troops could be deployed to the country as part of peacekeeping efforts.
In an exclusive interview with Sky News’ political editor Beth Rigby, Sir Keir said the UK would play its “full part” in any peace negotiations – including by deploying British troops for peacekeeping – though added that he did not want “to get ahead of ourselves”.
During his visit, Sir Keir also met Polish businesses, including the firm InPost which has announced it will invest a further £600m into the UK in the next five years to grow its operations.
It is thought that the overall £1bn investment by the firm, which operates parcel lockers, could support up to 12,000 new jobs.
-
Sports2 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports10 months agoStory injured on diving stop, exits Red Sox game
-
Sports1 year agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports3 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Business2 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway