Starmer refuses to rule out extending freeze on tax thresholds

Sir Kir Stmper has refused to expand the freeze on tax threshold, in which millions of people have been seen paying high rates.

The freeze on National Insurance (NI) and Income Tax Thresholds introduced under conservators is currently due to expires in April 2028.

But during the Prime Minister’s questions, it was asked whether the government has still planned to raise the freeze, Sir Keer only said that he is committed to the election manifesto of Labor.

This included a pledge not to increase national insurance, income tax or VAT – but no specific promise was made on Threshold.

Tax Threshold – Income level on which people start paying national insurance or income tax, or pay high rates – usually grows in line with inflation every year.

However, income tax thresholds have been frozen since 2021/22.

This means that people are being dragged into a high tax band, or to pay tax on their income for the first time, if they get a salary increase.

Extending the freeze by 2029/30 can increase the estimated £ 7BN in a year.

In his budget speech in the last autumn, Chancellor Rachel Reeves said that the expansion of the freeze promised to “hurt the working people” and again from 2028/29 promised to lift the threshold with inflation again.

However, the conservative leader Kemi Badenoch was asked if it is still a government policy, Sir Keer did not refuse to continue the freeze.

He told Commons, “No Prime Minister or Chancellor is going to write budget in advance. We are completely fixed on our fiscal rules. We are committed to them.”

“We are committed to our budget, for our manifesto commitments.”

PM’s reply was contrary to his previous response to Badenoch, when he was asked whether he was standing to increase the income tax, national insurance or VAT from the promise of Labor.

His answer to this was just: “Yes.”

The fiscal rules of the government do not include funding day-to-day expenses and borrowing for falling government loans as a national income share by 2029/29.

The rules are designed to assure the financial markets, but sticking to them limits the options of the government and increases the tax.

Badenoch also accused Sir Keir of “tampering” with a money tax idea – some labor MPs have done some work on the left side of the party.

Considering supporter It is said that a new 2% tax can increase £ 24bn per year at assets of more than £ 10m.

However, critics argue that such a step can leave the rich individuals.

Badenoch said to the Commons: “Let’s be honest that it means that it is one tax on the savings of all our components, on their homes, on their pension, it will be a tax on aspiration.”

Asked if he would rule with a money tax, Sir Kir said that Labor stabilized the economy and “does not need lessons” from conservatives.

It was again suppressed whether he would introduce a money tax by Green MP Adrian Ramsay, who suggested that “the biggest shoulders should bear the biggest burden”, Sir Kir said: “We cannot just do our way for development.”