Sir Keir Starmer has denied misleading the public over tax rises in the run-up to the general election.

Asked if he had misled voters by not warning them about the billions in tax rises expected in the Government’s first Budget on Wednesday, the Prime Minister said: “No, we were very clear about the tax rises that we would necessarily have to make whatever the circumstances.

“We were really clear in the manifesto and in the campaign that we wouldn’t be increasing taxes on working people, and spelt out what we meant by that in terms of income tax, in terms of NICs and in terms of VAT, and we intend to keep the promises that we made in our manifesto.”

It has been reported that Rachel Reeves, the Chancellor, is planning to impose a £20 billion National Insurance increase on employers on Wednesday.

No ‘war on middle Britain’

Labour had pledged in its manifesto to not raise taxes on what it described as “working people,” explicitly ruling out increases to VAT, national insurance, and income tax.

But when asked to define the term, Sir Keir said it was someone who “goes out and earns their living, usually paid in a sort of monthly cheque” and who cannot “write a cheque to get out of difficulties”.

When he spoke to reporters at the end of the Commonwealth heads of government meeting in Samoa on Saturday, the Prime Minister was asked whether he was “plotting a war on middle Britain”.

“No. Let me clear about that,” he said. “What we’re doing is two things in the Budget.

“The first is fixing the foundations, which is dealing with the inheritance that we’ve got, including the £22 billion black hole. We have to deal with that.

“In the past, leaders have walked past those problems, created fictions, and I’m not prepared to do that.”

Controversy has been growing over what defines a “working person”.

Sir Keir said earlier this week that he does not consider people who have an income from assets such as shares or property to be working people, promoting fears of tax rises on landlords and investors.

In a partial climbdown on that position, Downing Street clarified on Friday that those who hold a small amount of savings in stocks and shares still counted as working people.

Ministers have resisted going into the fine details of next week’s Budget, but sources have indicated Ms Reeves will seek to find £40 billion in tax increases and spending cuts in order to avoid a return to austerity.

Reports suggest capital gains tax, inheritance tax and fuel duty are among the levers she will pull to raise revenue as she seeks to put the economy on a firmer footing.

Ms Reeves has admitted she will raise some taxes, pointing to a £22 billion black hole in the public finances which she says she discovered had been left behind by her Tory predecessors after entering office, but has not specified which ones.