London, 30 October (H.S.): Prime Minister Sir Keir Starmer on Wednesday declined to reaffirm his manifesto commitment not to raise key taxes, intensifying speculation that Chancellor Rachel Reeves is preparing tax increases for next month's Budget.

During a tense Prime Minister's Questions, Sir Keir did not repeat his previous promise to avoid raising income tax, Value Added Tax (VAT), or National Insurance. When pressed on the issue by Conservative leader Kemi Badenoch, the prime minister stated only that the government would lay out our plans at the Budget on November 26. This contrasts sharply with his unequivocal yes to the same question in July.

Badenoch seized on the change, arguing it signaled that tax hikes were imminent because the Labour government was too weak to control public spending.The chancellor is facing pressure to find billions of pounds to fill a budget shortfall, reportedly around £20bn, following gloomy economic forecasts from the Office for Budget Responsibility (OBR).

The Labour Party's 2024 election manifesto explicitly pledged not to increase the rates of the UK's main taxes. Breaking this promise is reportedly causing a divide within the party. Some senior figures are privately advising that now is the opportune moment to raise income tax, while others fear the political fallout from such a significant breach of a pre-election promise.

In the House of Commons, Sir Keir attributed the economic challenges to the damage caused by previous Conservative governments, citing austerity, Brexit, and the 2022 mini-Budget.

Badenoch countered, accusing the prime minister of blaming others rather than controlling his own government's spending. After the session, the prime minister's spokeswoman also declined to renew the tax pledge, stating she could not pre-empt the chancellor's Budget announcement.

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Hindusthan Samachar / Jun Sarkar