Keir Starmer Leaves Door Open for Potential Tax Rise for Self-Employed

Sir Keir Starmer has refused to rule out tax increases for the self-employed, adding fresh ambiguity to Labour’s pledge not to impose additional tax burdens on “working people.” The Labour leader’s comments have sparked further speculation about his party’s tax strategy ahead of the upcoming budget, as concerns grow over a £20 billion gap in public finances.

During Prime Minister’s Questions, Starmer stated that his policies are aimed at “the sort of people that work hard but have not necessarily got the savings to buy themselves out of problems.” This remark, intended to define Labour’s position, has left many questioning whether higher earners and the self-employed could face increased taxes in the near future.

Labour’s manifesto promised not to raise income tax, national insurance, or VAT for “working people.” However, the term “working people” has been interpreted differently by various Labour officials. Heidi Alexander, Transport Secretary, defined it as referring to “people on modest incomes,” while Darren Jones, Chief Secretary to the Treasury, described it as “anyone with a payslip.” This inconsistency has led to confusion about which groups might be targeted by potential tax hikes.

Pressed by Kemi Badenoch, the Conservative Party leader, on whether the self-employed—a group without payslips—would bear additional tax burdens, Starmer avoided giving a definitive answer. He argued that the self-employed “suffered repeatedly under the Conservatives’ watch” but reiterated Labour’s commitment to remaining true to its manifesto pledges.

Badenoch also questioned whether Labour would consider raising taxes on savings or pension contributions. While Starmer refused to provide specifics or “write the budget months out from the budget,” his comments did little to quell speculation about Labour’s broader taxation plans.

A Conservative Party spokesperson criticised Starmer, claiming Labour’s position showed “contempt” towards working individuals. They added, “Hiking taxes is not inevitable—it is a choice brought on by the government’s economic mismanagement.”

As Labour negotiates internal disagreements and ongoing economic dilemmas, questions remain about how the party plans to balance protecting working people with addressing fiscal shortfalls. The autumn budget will be pivotal in clarifying both their economic priorities and their political approach to taxation.