Keir Starmer accused of misleading public on definition of 'working people' ahead of Budget tax raid

Keir Starmer is facing backlash after suggesting that landlords and shareholders do not fall under the category of 'working people' as the UK braces for a potentially tough Budget. The Chancellor of the Exchequer, Rachel Reeves, is set to announce new tax measures next week that could impact millions.

Accusations of deception

Sir Keir Starmer has been criticized for allegedly deceiving voters by preparing for a tax hike despite promising during the election to protect 'working people'. The PM's pledge to freeze income tax, national insurance, and VAT rates is now in question, with concerns that the burden may fall on individuals with assets.

Defining 'working people'

During an interview, Starmer defined 'working people' as those who earn a living through employment and cannot write a cheque to solve financial difficulties. When asked if this definition includes individuals with assets, he indicated that they do not fit within his interpretation.

Budget implications

The Budget announcement is expected to include increases in capital gains taxes, leading to debates on potential impacts on economic growth and workers. Additionally, changes in national debt calculations could provide the Chancellor with more financial flexibility but may raise concerns about market stability and borrowing costs.

Shadow Chancellor Jeremy Hunt warned that these financial maneuvers could result in prolonged high-interest rates, affecting homeowners looking to remortgage.