Read: Starmer and Badenoch clash over tax hikes for the UK
Prime Minister Keir Starmer has refused to rule out freezing income tax thresholds at the Budget next week, but was insistent that his government will not return to a period of austerity.
Starmer faced a barrage of questions from Conservative leader Kemi Badenoch in the Commons on Wednesday (19 November), with the opposition leader repeatedly noting that the expected increase in taxes would be in breach of the Labour Party’s manifesto.
“This is the first budget to unravel before it’s even been delivered. The Chancellor’s cluelessness, I’m afraid, is damaging the economy now. The prime minister needs to end this shambles. So, can he confirm today that he won’t break another promise by freezing income tax thresholds?” Badenoch asked.
Starmer did not respond directly to Badenoch but noted that his government refuses to return to an era of austerity.
“The budget is one week away today, and we will lay out our plans. I’ve said what we will do in terms of protecting the NHS and public services. What we won’t do is inflict austerity on the country as they did. What we won’t do is inflict a borrowing spree like Liz Truss did.”
Badenoch said it was quite clear that the Labour government is going to freeze thresholds.
“We didn’t get a clear answer from them but this is really important, because in her budget speech last year, the chancellor said, and I quote: ’I am keeping every single promise on tax that I made in our manifesto.’
“So, there will be no extension of the freeze in income tax and national insurance thresholds. Why was freezing thresholds a breach of the manifesto last year, but it isn’t this year?”
Starmer said that Badenoch was deliberately trying to speculate and distort the issue.
“They opposed NHS investment, and what did we get? Five million extra appointments in the first year of a Labour government. They tried growing the economy with millions on NHS waiting lists, with our schools crumbling, and holes in our roofs. It didn’t work. What do they want to do now? Go back to the same failed experiment.”
Concerns about a lack of clarity
Badenoch also noted that the upcoming Budget is causing real anxiety.
“People aren’t buying houses, businesses aren’t hiring, and they are cancelling investment decisions. Two weeks ago, the chancellor called a ridiculous press conference to blame everyone else for her having to raise income tax.
“Then last week, she U-turned on her own U-turn instead. We can see they’re planning to freeze income tax thresholds, something she said last year would be a breach of their manifesto. They are making it up as they go along. Doesn’t the country deserve better than government by guesswork?”
In response, Starmer said it was time to either renew the country with Labour or go back to ‘austerity 2.0’ with Reform or the Tories.
“They left waiting lists at record highs, almost a million more children in poverty, and they wrecked our public services.
“She comes here to talk down the country. We’re turning the page on more NHS appointments, free breakfast clubs, free childcare, more homes, and better public services. That’s what we’re fighting for – a Britain built for all.”
