UK politics live: Starmer hints at national insurance hike in budget as critics slam ‘Labour manifesto breach’
Sir Keir Starmer said Labour’s national insurance manifesto pledge related to taxes on working people
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Sir Keir Starmer has refused to rule out increasing employers’ national insurance contributions in the upcoming Budget but insisted the government would keep its manifesto promises.
He told the BBC: “We were very clear in the manifesto that we wouldn’t be increasing tax on working people and we expressly said that that was income tax, that was NICs etc.”
The prime minister’s refusal comes after Rachel Reeves has been criticised for refusing to rule out a rise in employer national insurance contributions that could be announced at the Budget on 30 October.
Speaking at Monday’s International Investment Summit, the chancellor warned of tax rises to come at the event in just over two weeks’ time.
Ms Reeves said: “We will stick to the commitments we made in our manifesto.”
Institute for Fiscal Studies director Paul Johnson saying a hike in employer NI contributions would be a “straightforward breach” of the Labour manifesto.
Speaking to Times Radio, he added that the pledge would “almost certainly” have to be broken in some way if Labour wants to fill its public spending gap.
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David Cameron hits back at claim he threatened Boris Johnson over Brexit backing
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Lord Cameron channelled the late Queen Elizabeth II in saying “recollections differ” after Mr Johnson had claimed those were his “exact words”.
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Liberal Democrats urge Reeves to ‘think again’ over rumoured NI hike
The Liberal Democrats urged the chancellor to “think again” over the rumoured increase to employer national insurance contributions in the Budget
Treasury spokesperson Daisy Cooper said: “The burden of this budget should fall on the likes of big banks, social media giants and oil and gas firms, instead of our local community businesses. The Chancellor should be protecting these smaller businesses, who are the backbone of our economy and the heartbeat of our communities.
“Now is not the time to raise national insurance rates on our high streets, local businesses and dynamic entrepreneurs.
“The Conservative government has left our economy on life support. Now is the time to boost growth by backing small businesses and repairing our crumbling public services.”
What would you like to see announced in Rachel Reeves’ budget? Join The Independent Debate
As chancellor Rachel Reeves prepares to deliver Labour’s first Budget in 14 years, there is significant interest in the potential fiscal changes on the horizon.
Prime minister Sir Keir Starmer has highlighted that the focus will be on “making people better off,” outlining three key priorities: improving living standards, strengthening the NHS, and rebuilding the country, particularly in terms of housing.
We would like to hear your thoughts on what you would like to see introduced in Reeves’ Budget. Should she focus on measures to support homeowners, such as the Freedom to Buy scheme? Or would you prefer a focus on closing tax loopholes, such as abolishing non-dom status, to ensure a fairer tax system?
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Tell us what you’d like to see announced in Labour’s first budget
Prime Minister Keir Starmer has already warned of ‘difficult decisions’ – but what measures and policies would you like to see introduced in Labour’s first autumn statement?
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Watch: Keir Starmer refuses to rule out raising national insurance contributions
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Asked for the Prime Minister’s view on paying compensation relating to Britain’s colonial past, a Downing Street spokesperson said on Monday: “We do not pay reparations.”
The question was put forward ahead of Sir Keir meeting the Commonwealth heads of government in Samoa on 21 October.
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Business chiefs urge Reeves to back Scotch whisky
Business leaders across Scotland are calling on Rachel Reeves to “back Scotch whisky” and cut alcohol duty.
Rachel Reeves has been urged to lower the duty placed on spirits after the previous government raised it by 10.1 per cent last year.
In a letter sent to the Treasury, the chancellor was told that last summer’s tax increase had a “damaging impact” on Scotland’s national drink.
It was signed by business leaders from organisations including the Scottish Chambers of Commerce, the Scottish Tourism Alliance, Scotland Food and Drink, UK Hospitality Scotland and the Institute of Directors and Prosper.
The group said a reduction on alcohol duty for Scottish whisky would “signal that Scotland is a competitive place to invest, would recognise the benefits of the sustainable employment for which the Scotch Whisky industry is renowned and would boost a central part of Labour’s ‘Brand Scotland’ vision”.
The government has been approached for comment.
What is the Labour national insurance row about?
Labour’s manifesto included a promise not to raise taxes on “working people”, including income tax, VAT and national insurance.
But the government has faced questions on whether the commitment not to raise national insurance covered employers’ contributions as well as those by employees.
At Monday’s investment summit chancellor Rachel Reeves refused to rule out hiking employers’ contributions in the October 30 Budget.
And today Sir Keir Starmer said Labour’s manifesto pledge only covered taxes on working people, further fueling speculation of a rise in national insurance contributions for employers.
Institute for Fiscal Studies director Paul Johnson saying a hike in employer NI contributions would be a “straightforward breach” of the Labour manifesto.
Jeremy Hunt, the shadow chancellor, posted on X: “It’s obvious to most people that raising national insurance would breach Labour’s manifesto pledge to … not raise national insurance!”
PM says £550 million homes investment will help more people get on housing ladder
Sir Keir Starmer said £550 million of investment to build new homes would enable more people to get on the housing ladder.
Schroders, Man Group and Resonance announced new impact investment funds on Tuesday which will go into housebuilding.
“We’ve said as a government we’re going to fix the foundations, rebuild our country, and expressly saying ‘now is the time to back us’,” he told the BBC.
“Companies and investors are coming in today saying ‘here’s half a billion pounds’. We want to raise that, by the way, I want that to be up over £1 billion before too long.”
The money would fund construction across the country because “too many people”, especially the young, “want to get on the housing ladder because they know that owning your own home is sort of base camp for their aspirations in life”.
“They haven’t had that for many years because the last government failed.
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