Connect with us

Published

on

Who counts as a working person will matter a lot next week when the new Labour government unveils what is being billed as a historic budget.

Sir Keir Starmer used the phrase “working people” repeatedly in the general election as he sought to reassure voters he wasn’t going to raise their taxes.

But as this bumper budget comes around, it’s clear that someone’s taxes are going to go up, despite the prime minister repeatedly refusing to acknowledge this in our interview at the Commonwealth leaders summit in Samoa on Thursday. The closest he got was telling me “we’re not going back to austerity” which means no to big spending cuts.

Treasury insiders tell me that the government has to find £40bn to plug gaps in the public finances, and that means tax rises and spending cuts are on the way.

Politics latest: Tories accuse government of ‘broken promises’ over budget rule change

So taxes are going up, and there are a couple of supplementary questions to this: Who is going to be hit by tax rises?

And, given pretty much all of us with a job might count ourselves as “working people”, are lots of you going to feel let down by the new Labour government should you find yourselves caught in tax rises?

More on Budget 2024

Please use Chrome browser for a more accessible video player

PM questioned on tax rises

On Thursday, I did get a more contoured definition of who the prime minister really means when he talks about working people.

For a start, he was clear to me that someone who gets their income from assets, such as shares and property, as well as work, wouldn’t come within” Sir Keir’s definition of a working person.

This is a strong hit that rises in capital gains taxes could be on the way and also leans to a bigger point that Sir Keir thinks the wealthy – workers or not – should pay more tax.

Working people are, in his “mind’s eye”, the people who have a “sort of knot in the bottom of the stomach, which if push comes to shove and something happens to me and my family, I can’t just get a cheque book out, even though maybe [I’ve] got a bit of savings”.

“They are the people that, in a way, I came into politics to try and make sure they had secure jobs and didn’t have the anxiety of public services not working, and felt genuinely better off with better opportunities. That’s who I have in my mind’s eye.”

Who might those people be?

Is it a “white van man” hoping that fuel duty won’t go up, or a nurse worried that her council tax could go up?

Is it the millions of workers on the basic rate of income tax that could find themselves dragged into higher tax bands should the chancellor decide to extend the Conservatives’ freezing of tax bands?

The chancellor could raise £7bn a year from that if she extends that beyond 2028. But if she does that on Wednesday, millions of those workers in Sir Keir’s “mind’s eye” might feel let down by this government.

Read more from Sky News:
Apology for slave trade ‘not on the agenda’
Sale and supply of single-use vapes to be banned

In the election, it helped the prime minister to have a broad definition of a working person because it meant he could talk to lots of groups of voters.

But now, as we get to the nuts and bolts of who is going to shoulder the burden of plugging gaps in the public finances, the “difficult decisions” as he puts it, are going to bite.

We do now have, at least, a better sense of who he wants to protect in this budget from tax rises. But will his chancellor follow through?

Continue Reading

Politics

Just 25% of public think Sir Keir Starmer will win next election – with welfare row partly to blame

Published

on

By

Just 25% of public think Sir Keir Starmer will win next election - with welfare row partly to blame

Only a quarter of British adults think Sir Keir Starmer will win the next general election, as the party’s climbdown over welfare cuts affects its standing with the public.

A fresh poll by Ipsos, shared with Sky News, also found 63% do not feel confident the government is running the country competently, similar to levels scored by previous Conservative administrations under Boris Johnson and Rishi Sunak in July 2022 and February 2023, respectively.

Politics latest: ‘A moment of intense peril’ for PM

The survey of 1,080 adults aged 18-75 across Great Britain was conducted online between 27 and 30 June 2025, when Labour began making the first of its concessions, suggesting the party’s turmoil over its own benefits overhaul is partly to blame.

The prime minister was forced into an embarrassing climbdown on Tuesday night over his plans to slash welfare spending, after it became apparent he was in danger of losing the vote owing to a rebellion among his own MPs.

Please use Chrome browser for a more accessible video player

Govt makes last-minute concession on welfare bill

The bill that was put to MPs for a vote was so watered down that the most controversial element – to tighten the eligibility criteria for personal independence payments (PIP) – was put on hold, pending a review into the assessment process by minister Stephen Timms that is due to report back in the autumn.

The government was forced into a U-turn after Labour MPs signalled publicly and privately that the previous concession made at the weekend to protect existing claimants from the new rules would not be enough.

More on Benefits

While the bill passed its first parliamentary hurdle last night, with a majority of 75, 49 Labour MPs still voted against it – the largest rebellion in a prime minister’s first year in office since 47 MPs voted against Tony Blair’s Lone Parent benefit in 1997, according to Professor Phil Cowley from Queen Mary University.

It left MPs to vote on only one element of the original plan – the cut to Universal Credit (UC) sickness benefits for new claimants from £97 a week to £50 from 2026/7.

Please use Chrome browser for a more accessible video player

Govt makes last-minute concession on welfare bill

An amendment brought by Labour MP Rachael Maskell, which aimed to prevent the bill progressing to the next stage, was defeated but 44 Labour MPs voted for it.

The incident has raised questions about Sir Keir’s authority just a year after the general election delivered him the first Labour landslide victory in decades.

Read more:
How did your MP vote on Labour’s welfare bill?
The PM faced down his party on welfare and lost

And on Wednesday, Downing Street insisted Rachel Reeves, the chancellor, was “not going anywhere” after her tearful appearance in the House of Commons during prime minister’s questions sparked speculation about her political future.

The Ipsos poll also found that two-thirds of British adults are not confident Labour has the right plans to change the way the benefits system works in the UK, including nearly half of 2024 Labour voters.

Keiran Pedley, director of UK Politics at Ipsos, said: “Labour rows over welfare reform haven’t just harmed the public’s view on whether they can make the right changes in that policy area, they are raising wider questions about their ability to govern too.

“The public is starting to doubt Labour’s ability to govern competently and seriously at the same levels they did with Boris Johnson and Rishi Sunak’s governments. Labour will hope that this government doesn’t end up going the same way.”

Continue Reading

Politics

Emotional Reeves a painful watch – and a reminder of tough decisions ahead

Published

on

By

Emotional Reeves a painful watch - and a reminder of tough decisions ahead

It is hard to think of a PMQs like it – it was a painful watch.

The prime minister battled on, his tone assured, even if his actual words were not always convincing.

But it was the chancellor next to him that attracted the most attention.

Rachel Reeves looked visibly upset.

Chancellor of the Exchequer Rachel Reeves (right) crying as Prime Minister Sir Keir Starmer speaks. Pic: Commons/UK Parliament/PA
Image:
Chancellor of the Exchequer Rachel Reeves (right) crying as Prime Minister Sir Keir Starmer speaks. Pic: Commons/UK Parliament/PA

It is hard to know for sure right now what was going on behind the scenes, the reasons – predictable or otherwise – why she appeared to be emotional, but it was noticeable and it was difficult to watch.

Reeves looks visibly upset as Starmer defends welfare U-turn – politics latest

Her spokesperson says it was a personal matter that they will not be getting into.

More from Politics

Even Kemi Badenoch, not usually the most nimble PMQs performer, singled her out. “She looks absolutely miserable,” she said.

Anyone wondering if Kemi Badenoch can kick a dog when it’s down has their answer today.

The Tory leader asked the PM if he could guarantee his chancellor’s future: he could not. “She has delivered, and we are grateful for it,” Sir Keir said, almost sounding like he was speaking in the past tense.

Pic PA
Image:
Rachel Reeves looked visibly upset behind Keir Starmer at PMQs. Pic PA

It is important to say: Rachel Reeves’s face during one PMQs session is not enough to tell us everything, or even anything, we need to know.

But given the government has just faced its most bruising week yet, it was hard not to speculate. The prime minister’s spokesperson has said since PMQs that the chancellor has not offered her resignation and is not going anywhere.

But Rachel Reeves has surely seen an omen of the impossible decisions ahead.

How will she plug the estimated £5.5bn hole left by the welfare climbdown in the nation’s finances? Will she need to tweak her iron clad fiscal rules? Will she come back for more tax rises? What message does all of this send to the markets?

If a picture tells us a thousand words, Rachel Reeves’s face will surely be blazoned on the front pages tomorrow as a warning that no U-turn goes unpunished.

Continue Reading

Politics

Trump’s crypto ventures have added $620M to his net worth — Report

Published

on

By

Trump’s crypto ventures have added 0M to his net worth — Report

Trump’s crypto ventures have added 0M to his net worth — Report

With the US president’s ties to his family-backed business, World Liberty Financial, and a memecoin launch, Donald Trump has seen his personal wealth increase by millions in 2025.

Continue Reading

Trending