In a significant political statement ahead of the general election, Labour leader Sir Keir Starmer has reaffirmed his party’s commitment to not raise personal taxes. This pledge comes as part of Labour’s broader strategy to present a fiscally responsible and voter-friendly economic policy.
During a recent announcement, Starmer emphasised that the upcoming Labour manifesto will include no unexpected tax increases. “We will launch our manifesto very soon and that will have no tax surprises in it because all of our plans are fully funded and fully costed and none of them require tax rises over and above the ones that we’ve already announced,” he stated.
Labour’s commitment specifically covers income tax, national insurance, and VAT, with a promise to hold these steady for at least the next five years. This stance mirrors the position of the Conservative Party, which has also pledged not to raise taxes should they retain power.
This political alignment comes despite warnings from the Institute for Fiscal Studies (IFS), which recently issued a report suggesting that tax increases would be necessary to sustain current levels of public service funding. According to IFS research economist Bee Boileau, maintaining real-terms levels of departmental funding without increasing taxes or borrowing more would require either cutting the scope of public services or accepting their further decline.
Boileau remarked, “They can cut the scope of what the state provides or accept further worsening of public services which already look under strain. Or they can raise taxes, or borrow more, to top up spending and maintain real-terms levels of departmental funding. Neither the Conservative Party nor the Labour Party has been clear about which of these options they would take. Neither has shown any ambition to cut the scope of the state.”
As both major parties head into the election season, the issue of tax policy and public service funding will undoubtedly be a focal point of debate. Voters will be closely watching to see how each party plans to balance the books while addressing the needs of the nation.
