Sir Keir Starmer has failed to rule out whether Labour will break a manifesto promise not to raise VAT amid fresh fears the Government will have to find £30billion at the next budget.
The Prime Minister declined on seven occasions to confirm he would keep the Government’s promise of keeping the current 20 per cent rate of VAT charged on most goods and services in an interview before Labour’s conference in Liverpool.
He said Labour’s manifesto commitment to not raise taxes on working people “stands”, however, he did not clarify whether that would stay in place after November’s budget.
Sir Keir’s apparent deflection comes as Chancellor Rachel Reeves awaits the first official forecasts from the budget watchdog on the state of the economy.
That is expected to be given to the Treasury later this week.
It appears the Office for Budget Responsibility (OBR) will warn Ms Reeves that she will have to find about £30billion in further revenues or savings as a result of higher borrowing costs, as well as policy U-turns and forecasted future economic growth.
The Treasury hopes it can convince the OBR that Government plans to include new AI investment and its economic reset with the European Union will benefit the economy, increase growth and reduce the projected financial hole.
The concern, however, is that Ms Reeves will be left with no choice but to raise taxes if Labour can not convince the OBR.
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Young people will have benefits scrapped if they refuse job offers
Young people will have their benefits scrapped if they refuse job offers or training under new plans set to be revealed by Rachel Reeves.
The Chancellor is also expected to pledge to end long-term youth unemployment by guaranteeing any young person paid work if they have been unable to find a job or training for at least 18 months.
The “youth guarantee” will see thousands of young people who are unemployed or unable to work due to sickness offered help by authorities.
However, if this is refused, their benefits could be cut.
Andy Burnham challenges Keir Starmer over allowing ‘climate of fear’ in Labour
The Greater Manchester Mayor has accused the Prime Minister of allowing a “climate of fear” in the Labour Party.
It’s a fresh attack from Andy Burnham on Sir Keir Starmer on the first day of the party’s conference in Liverpool.
The Mayor said debate over climate was being “closed down” within the party and claimed the leadership had been “narrow and shallow” on the topic.
Mr Burnham refused to rule out a future campaign to challenge Sir Keir’s leadership
He added that people who wanted him to show loyalty to Sir Keir did not properly understand the challenge the Government was facing.
