A government minister refused to rule out increasing taxes on those with the highest incomes.
Stephen Kinnock dodged the question nine times when Sky News correspondent Kay Burley asked whether people earning more than £100,000 a year were “working people”, under Labour’s definition.
The Labor Party manifesto pledged not to increase National Insurance, VAT, or income tax on “workers.”
However, the party has not revealed its precise definition of “working people”, raising concerns that it is preparing to hike taxes on certain groups in the October 30 Budget, including those earning more than £100,000.
At present, people earning between £50,271 and £125,140 pay 40% tax on that income, and those earning more than that pay 45%. People earning more than £100,000 currently have smaller personal allowances.
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Health Minister Wes Streeting, speaking to Sky News’ Trevor Phillips on Sunday, warned that high earners should not expect help in the budget, suggesting it would focus on “people on low or middle income”.
Pressed today, Health Minister Mr Kinnock said he would not speculate and added: “The Chancellor will determine that on October 30.”
He insisted that the government “will not violate any of those commitments in the statement.”
He said the definition of “working people” “should be seen in the round, and that is what will be on the table on October 30.”
He added that Chancellor Rachel Reeves will make the definition of working people “absolutely clear” during her budget announcement.
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Sir Keir Starmer’s spokesman, when asked whether someone earning six figures is a working person, also dodged the question and again pointed to Mr Kinnock’s comments.
Ms Reeves has been saying for months that the budget will be “difficult”, and it was recently revealed that she aims to fill the £40bn black hole – far larger than the £22bn Labor said the Conservatives had left them.
On Sunday, Streeting refused to rule out freezing tax thresholds, which would drag more people into higher tax bands.
The row over Labour’s definition of “employed people” has escalated over the past few weeks, as it emerged that Ms Reeves is expected to lift National Insurance for employers.
Labor claimed this would not contravene their manifesto because they had only promised not to raise taxes on working people.
During the election campaign in June, Sir Keir Starmer said that “working people” were those who worked but had no meaningful savings.
Mrs. Reeves said They’re the ones who go out to work.leaving voters clueless.
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The capital gains tax, paid on the sale of stocks and other assets, is expected to increase to 33% or more, but not to 39%.
The current rate for the highest earners ranges from 20% to 28% depending on the type of asset.
The increase will be seen as a tax on wealth, as only around 350,000 people a year pay capital gains, but contribute £15bn in tax revenue, according to the Institute for Fiscal Studies.
Ms Reeves is also expected to cut some exemptions in the inheritance tax system and could keep council tax increases at 5% per year.
Motoring organizations have raised concerns that Labor will increase fuel duty for the first time in 14 years by not continuing the 5p cut.