No plan for more tax rises, Starmer tells BBC

Sir Keir Starmer has told the BBC it is not his plan to have any more tax rises before the next general election – but said he could not rule them out in the event of “unforeseen” circumstances.

The prime minister was speaking to BBC Breakfast shortly after setting out six pledges, including a promise to put more money in the pockets of working people.

Sir Keir said he knew some decisions were “not always popular”, but voters could judge him at the next election on whether they felt their living standards had improved.

Conservative leader Kemi Badenoch dismissed the PM’s new pledges as a sign that Labour had not been “ready for government”.

In addition to improving living standards, the other “milestones” announced by Sir Keir in a speech on Thursday included building 1.5 million new homes in England, ending hospital backlogs, and increasing the proportion of children who are “ready to learn” when starting school to 75%.

Labour has dismissed suggestions the new pledges are a reset following their first few months in government.

Chancellor Rachel Reeves announced a near-£70bn increase in public spending in her first Budget in October, of which more than half will come from higher taxes, with businesses set to bear the brunt of the rises.

Employers will see an increase in National Insurance contributions on their workers’ earnings which will raise up to £25bn a year for the government. There will also be an increase in capital gains tax on share sales and a freeze on inheritance tax thresholds.

Businesses have warned the tax rises will leave employers with less cash to give pay rises and create new jobs.

Reeves sought to reassure bosses by telling the Confederation of British Industry conference: “I’m really clear, I’m not coming back with more borrowing or more taxes.”

But days later Business Secretary Jonathan Reynolds gave a less specific commitment that “comparable” business tax rises would not be repeated, when asked by MPs.

Asked about tax rises on BBC Breakfast, Sir Keir said: “I don’t want to suggest we’re going to keep coming back for more because that isn’t the plan.

“What I can’t do is say to you there are no circumstances unforeseen in the future that wouldn’t lead to any change at all.

“If you look at Covid and Ukraine, everyone knows there are things we can’t see now, but I can tell you our intention was to do the tough stuff in that Budget, not keep coming back.”

Sir Keir’s interview with the BBC follows a major speech on Thursday, in which he set out six pledges which he says will allow voters to hold his government to account.

The targets – or “milestones” – cover the economy, housebuilding, the NHS, policing, pre-school education and green energy, and are meant to be met by 2029, the likely date of the next election.

Asked why he thought his popularity had fallen since July’s general election, Sir Keir told Breakfast he had chosen to take the “tough decisions” early on in his premiership.

He said he knew the decisions would not always be popular but were needed “to turn the country around”.

“I just don’t want to do what politicians have done in the past which is to get in the warm bath of empty promises.

“I’m prepared to roll up my sleeves and tell people it’s tough – we’re going to do it but you’re going to be better off.”

Asked when people would see an improvement in their finances, Sir Keir said that would be measured at the end of the parliament, but that he wanted people to “feel better off straight away”.

He added that a pay rise for those on the lowest wages meant three million people were already better off as a result of the government’s actions.

Writing in The Times, the prime minister expanded on his pledge to build 1.5 million new homes in England, saying he was ready to “launch a golden era of building”.

“Britain is in the grip of the worst housing crisis in living memory,” Sir Keir writes, blaming this on a planning system he says is “urgently in need of decisive reforms”.

“For too long, the country has been held to ransom by the blockers and bureaucrats who have stopped the country building.”

The vast majority of councils in England and Wales believe the 1.5m target is “unrealistic” and impossible to achieve, according to responses to a consultation exercise seen by the BBC.

Following Sir Keir’s speech on Thursday, Conservative leader Kemi Badenoch said: “The prime minister’s emergency reset confirms that Labour had 14 years in opposition and still weren’t ready for government.

“Nothing concrete on immigration – because Labour have no plan to control numbers.”

The prime minister has said he wants to reduce migration levels, but his six pledges did not include a measurable target.

Sir Keir told BBC Breakfast that trying to put a “hard cap” on migration numbers had not worked in the past.