Senior ministers are warning Labour leader Keir Starmer that he faces significant backlash from within his cabinet and from voters if he breaks the party's manifesto pledge not to raise income tax. This warning comes amid reports that the Treasury is exploring options to increase the income tax rate by 2p, while simultaneously cutting national insurance by the same amount, to address a projected budget shortfall of between £30bn and £40bn.
Ministers are concerned that breaking this key pledge could severely damage the party's chances of recovery in opinion polls, especially with voters already feeling weary. They argue that the promise was crucial to winning the last election and that deviating from it risks eroding voter trust, likening the potential damage to the Liberal Democrats' "tuition fee moment" in 2010.
Several prominent cabinet members, including Darren Jones, Pat McFadden, Shabana Mahmood, and Steve Reed, are reportedly among those who have voiced concerns. While some economists are urging Chancellor Rachel Reeves to raise income tax, cabinet ministers prefer exploring savings within departments or revisiting welfare spending. Concerns are also already present regarding other potential tax measures like a "mansion tax" or increased private school fees.
Pollsters and political analysts suggest that breaking the income tax pledge could be a "point of no return" for the government with voters. They believe that while the exact percentage increase might not matter, the act of breaking the promise itself will be a significant issue for voters at the next election. Some suggest that the government might have a slim chance of success ... download the app to read more
YoyoFeed ! Follow top global news sources, read AI-powered summaries, ask AI your questions, translate news into your language, and join live chats — all with YoyoFeed!