Starmer says a Labour government would bring back 45p tax rate

A Labour government would bring back the 45p tax rate for the highest earners, Sir Keir Starmer has announced.

But it would not reverse the planned 1p cut to the basic rate.

His comments go further than members of the shadow cabinet, who criticised the decision to cut taxes for those earning more than £150,000.

On Friday the chancellor Kwasi Kwarteng announced he was abolishing the highest rate of tax as part of £45bn-worth of tax cuts, alongside massively increased borrowing.

He also reversed the rise in national insurance and dumped a planned rise in corporation tax in a drive to boost economic growth.

But sterling fell to its lowest level since in 37 years amid concerns over borrowing and whether the plans would be enough to stimulate growth.

Sir Keir said he would reinstate the top income tax rate of 45 per cent, but supports the government plans to cut the basic rate to 19p.

Asked if Labour would reintroduce the 45p rate, he told the BBC’s Sunday With Laura Kuenssberg programme "Yes."

"I do not think that the choice to have tax cuts for those that are earning hundreds of thousands of pounds is the right choice when our economy is struggling the way it is, working people are struggling in the way they are... that is the wrong choice," he said.

"I would reverse the decision that they made on Friday."

But Sir Keir said he backed the cut to the basic rate.

"I’ve long made the argument that we should reduce the tax burden on working people. That’s why we opposed the national insurance increase earlier this year, which of course the Government is now reversing," he said.

Earlier London mayor Andy Burnham said a future Labour government should reverse the 1p income tax cut and bring back the 45p rate, in what was widely seen as a challenge to Sir Keir.

“I don’t think it’s a time for tax cuts, it’s a time to support people through this crisis,” he said.