The government will go “over and above” the tax rises outlined during the general election campaign at the budget, the shadow leader of the House of Commons has said.
Chris Philp insisted it was “very likely, near certain” that there are going to be “enormous tax increases coming, despite the fact they told the public in the election campaign that wouldn’t happen”.
Labour ruled out increasing income tax, national insurance or VAT in its manifesto before getting elected, promising to protect “working people” — the definition of which has come into question in recent weeks.
At the budget, the amount employers pay in national insurance is set to rise by up to two percentage points. The money, the government has briefed, will be used to help inject money into cutting NHS waiting lists.
The chancellor is also expected to prolong the freeze on income tax thresholds by two years to 2030 after the previous Conservative government froze them until 2028.
Commenting on the government’s tax policies, Philp told Sky News: “During the election campaign, Keir Starmer and Rachel Reeves said that nothing in their plans required tax increases that went over and above what was in their manifesto and from all of the pre-briefing we have seen it now looks very likely, near certain, there are going to be enormous tax increases coming despite the fact they told the public in the election campaign that wouldn’t happen.
“So I think they lied to the British public, they misled the British public, in order to get elected and now we are seeing their true colours, now we are seeing what their plans really are.”
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It was put to shadow commons leader that he could not accuse Labour of lying when the budget had not yet been delivered. Philp responded: “Well, they’re trailed it extensively, so I think we’ve got a pretty good idea.”
Speaking from the despatch box later this afternoon, chancellor Rachel Reeves will vow the budget takes the difficult but necessary decisions to “restore economic stability” and begin a “decade of national renewal”.
The chancellor is aiming to plug the £22 billion black hole Labour claims was left by the previous Conservative government. Reeves is expected to insist there are no shortcuts to “fixing the mess the Conservatives left” — but will add that the prize on offer is “immense”.
The chancellor will say: “My belief in Britain burns brighter than ever. And the prize on offer today is immense.
“More pounds in people’s pockets. An NHS that is there when you need it. An economy that is growing, creating wealth and opportunity for all. Because that is the only way to improve living standards.
“And the only way to drive economic growth is to invest, invest, invest. There are no shortcuts. To deliver that investment we must restore economic stability.”
Reeves will add: “This is not the first time that it has fallen to the Labour Party to rebuild Britain. In 1945, it was the Labour Party that rebuilt our country out of the rubble of the Second World War. In 1964, it was the Labour Party that rebuilt Britain with the white heat of technology. And in 1997, it was the Labour Party that rebuilt our schools and hospitals.
“Today, it falls to this Labour Party, this Labour government, to rebuild Britain once again.”
The prime minister chaired a political cabinet meeting, with civil service officials excluded, on Tuesday ahead of the budget.
The PM told attendees that the budget would show that the government is “choosing to fix the NHS, rebuild Britain and protect the payslips of working people”, a Labour spokesperson commented.
Keir Starmer also “highlighted that tough choices are necessary to stabilise the economy and rebuild our country”, the spokesperson added.
Reeves told ministers: “The Labour Party promised there would be no return to austerity and the budget tomorrow would deliver on that promise.”
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