Sir Keir Starmer has denied accusations of lying amid widespread anticipation grows ahead of a potential £35billionn tax raid in Rachel Reeves' maiden Budget.
The Chancellor is set to announce a tax increase of almost two per cent in National Insurance Contributions targeted at employers in her maiden Budget - with the private sector taking the hit.
Speaking at a press conference in Samoa this morning, the Prime Minister said that the pain that will be inflicted on the British public would be worth it to fix the foundations of broken Britain.
He said that he wanted to be judged on whether Labour has made people "better off" and whether the NHS is put "back on its feet", while also being "fit for the future".
He said: "That is as much about reform and technology as it is about money. There is no investment without reform as far as I'm concerned."
During the election campaign, Labour vowed to not raise taxes on "working people" - specifically ruling out rises in National Insurance, VAT and income tax.
Starmer had previously suggested that the term "working people" referred to those who attended work, rather than individuals who receive income through rental properties or other assets.
Firmly denying that he had "misled" the British public, Starmer claimed: “We were very clear about the tax rises that we would necessarily have to make up, whatever the circumstances and you've listed them there and I listed them, I don't know how many times in the campaign.
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“We were really clear in the manifesto about and in the campaign that we wouldn't be increasing taxes on working people and spelt out what we meant by that in terms of income tax, in terms of NICs and in terms of VAT, and we intend to keep the promises that we made in our manifesto.”
Conservative Shadow Energy Secretary Claire Coutinho criticised the Prime Minister.
She said: “Keir Starmer went into an election saying he’d protect working people only to define that as a subset of people with jobs once he won.
“Labour either had no plan for post election or straight up lied to the public on multiple fronts.”
Big and small businesses alike have expressed fear of the move's impact on growth as Budget leaks have revealed the new tax rise for private sector employers.
The CBI's interim head of tax policy Andy Scott said: “Many of our members are very concerned about potential increases to employers’ national insurance contributions."
“Firms have told us that increasing employers’ levies will impact their growth plans with potential implications on pay, hiring and investment.”
Recognising the dreaded impact on businesses, Shadow Chancellor Jeremy Hunt has warned that the tax hike will be a jobs tax on working people, fearing that the move would lead to fewer jobs and lower wages as businesses scramble to cover costs.
The IFS' Paul Johnson also warned that a NI employer tax rise would classify a "straightforward breach" of Labour's election manifesto.
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The Chancellor is set to announce a tax increase of almost two per cent in National Insurance Contributions targeted at employers in her maiden Budget - with the private sector taking the hit.
Speaking at a press conference in Samoa this morning, the Prime Minister said that the pain that will be inflicted on the British public would be worth it to fix the foundations of broken Britain.
He said that he wanted to be judged on whether Labour has made people "better off" and whether the NHS is put "back on its feet", while also being "fit for the future".
He said: "That is as much about reform and technology as it is about money. There is no investment without reform as far as I'm concerned."
During the election campaign, Labour vowed to not raise taxes on "working people" - specifically ruling out rises in National Insurance, VAT and income tax.
Starmer had previously suggested that the term "working people" referred to those who attended work, rather than individuals who receive income through rental properties or other assets.
Firmly denying that he had "misled" the British public, Starmer claimed: “We were very clear about the tax rises that we would necessarily have to make up, whatever the circumstances and you've listed them there and I listed them, I don't know how many times in the campaign.
LATEST DEVELOPMENTS:
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- Keir Starmer scolded over 'shambolic' definition of 'working people'
“We were really clear in the manifesto about and in the campaign that we wouldn't be increasing taxes on working people and spelt out what we meant by that in terms of income tax, in terms of NICs and in terms of VAT, and we intend to keep the promises that we made in our manifesto.”
Conservative Shadow Energy Secretary Claire Coutinho criticised the Prime Minister.
She said: “Keir Starmer went into an election saying he’d protect working people only to define that as a subset of people with jobs once he won.
“Labour either had no plan for post election or straight up lied to the public on multiple fronts.”
Big and small businesses alike have expressed fear of the move's impact on growth as Budget leaks have revealed the new tax rise for private sector employers.
The CBI's interim head of tax policy Andy Scott said: “Many of our members are very concerned about potential increases to employers’ national insurance contributions."
“Firms have told us that increasing employers’ levies will impact their growth plans with potential implications on pay, hiring and investment.”
Recognising the dreaded impact on businesses, Shadow Chancellor Jeremy Hunt has warned that the tax hike will be a jobs tax on working people, fearing that the move would lead to fewer jobs and lower wages as businesses scramble to cover costs.
The IFS' Paul Johnson also warned that a NI employer tax rise would classify a "straightforward breach" of Labour's election manifesto.
Find Out More...