Keir Starmer insisted the Labour’s “manifesto stands” when pressed on possible VAT rises.
Keir Starmer being interviewed by Laura Kuenssberg (Image: BBC)
Keir Starmer has failed to rule out breaking his election manifesto by raising VAT.
He insisted the “manifesto stands” when pressed on the pledge not to hike VAT, income tax or national insurance.
The Prime Minister repeated the phrase and added: “We put that manifesto before the electorate. We got elected and that manifesto stands.
“I’m not going to go through the details of what may be in the Budget.
“Obviously, it’s two months away and no prime minister and no chancellor would ever sit here and indicate two months out what may or may not be in the Budget.”
But critics have pointed out that things that stand currently can fall at a later date.
Sir Keir and Chancellor Rachel Reeves will be pressed hard in the run-up to the November 26 budget to make a categoric commitment on this.
The upcoming Budget is a “critical point” for whether Unite members choose to disaffiliate from Labour, the union’s general secretary Sharon Graham has said.
She said it was getting “harder and harder to justify” affiliation with Labour and that the “time is getting close” to make a choice.
“My members are scratching their heads and they’re asking, ‘how does a Labour Government allow two oil refineries to shut with absolutely no plan? How have we got a net zero plan that has workers at the end of the queue? Where is the plan for workers? Where is the transition? Where is the money?’” she told Sunday Morning With Trevor Phillips on Sky News.
Asked how long Sir Keir Starmer has before that decision comes, Ms Graham said: “The Budget is an absolutely critical point of us knowing whether direction is going to change,” she said.
She added: “Those fiscal rules need to be changed. Other countries are doing it. We should stop dancing around our handbag and do that. If that Budget is essentially nothing, it’s insipid.
“I think we’ve got a real problem our hands, because without the money to make the change, then nothing is going to change.”
Rachel Reeves conceded on Friday that there were “trade-offs” she had to make between tax and spend which made people “unhappy”, but said avoiding them would risk a repeat of the economic chaos that followed Liz Truss’ mini-budget.
Speaking at the Global Progress Action summit in London, she said there was “nothing progressive about seeing interest rates go up again” because it takes money away from working people, businesses and public services.
She said she wanted to curb the spiralling cost of servicing debt, saying: “I want to reduce those costs so we can use that money to better effect.”
The Chancellor told the audience: “No-one can accuse me of not accepting that there are trade-offs.
“That’s why there are people who are unhappy. But if you pretend there aren’t trade-offs, then we’re going to go the way that Liz Truss went.”
She warned that Labour would then risk being “consigned to total irrelevance, which is where the Conservatives are”.