Conservatives demand Labour come clean on who they will tax at the Budget

After the repeated refusal of Ministers to come clean on how they define “working people” ahead the Budget, the Conservatives have tabled a question in the House of Commons to demand answers.  

During the 2024 General Election Labour stated that they would “not increase taxes on working people” but have failed to elaborate on this promise. Additionally, they ruled out increases to Income Tax, National Insurance and VAT.  

John Glen MP, Shadow Paymaster General, has asked the Cabinet Office “what methodology the Government uses to assess whether someone is a working person for the purposes of policy development; and whether pensioners are included in that demographic”.  

A response to the question is now overdue to both Parliament and the public, with Labour having missed the deadline for a response last week. 

This morning Labour Minister Stephen Kinnock once again failed to answer questions on how this government is defining a working person. After repeatedly being pushed on Sky News Kinnock claimed that “definitions have to be seen in the round” and that it would not be “appropriate” for him to speculate on the definition ahead of the budget despite making the promise during the election campaign.  

On 19^th June, Sir Keir Starmer claimed that he was a “working person”, based on his “own definition”.  

According to his most recent tax return, Sir Keir Starmer had an income of £404,030, with a salary of £128,291 and additional income of £275,739 from the disposal of assets, on which he paid £52,688 in Capital Gains Tax.  

Were Rachel Reeves to increase Capital Gains Tax at the Budget, for Sir Keir Starmer to be consistent in his definition he must not have been a “working person” in 2022-23, only to become one sometime thereafter. 

A Conservative Party spokesman said: 

“This Labour Government is incapable of being straight with the British public. 

“Time and time again they promised not to raise taxes on working people, and now just 9 days from their first budget they still can't even say what that means.  

“They must urgently clarify who will bear the brunt of their tax plans or once again face accusations that they are gearing up to break their promises to the British people.” 

ENDS 

Notes to Editors 

·                     The Conservatives have tabled a Parliamentary Question demanding Labour explain how they define a “working person”. John Glen MP “To ask the Minister for the Cabinet Office, what methodology the Government uses to assess whether someone is a working person for the purposes of policy development; and whether pensioners are included in that demographic.” (Hansard, 14 October 2024, PQ 8805, link). This remains unanswered.  

Labour have repeatedly failed to answer how they are defining a working person: 

·                     Stephen Kinnock refused to say higher earners were included in Labour's promise not to raise taxes. Stephen Kinnock refused, six times, to say that high earners were considered ‘working people' and therefore included in Labour's manifesto pledge to ‘not raise taxes on working people' (The Times, 21 October 2024, link).   

o    Stephen Kinnock refused to answer questions on what a working person was, stating ‘definitions have to be seen in the round'.  STUDIO: ‘No, but just I'm just asking for clarification from you, if you would. If you earn more than six figures, are you no longer a working person?' KINNOCK: ‘The chancellor will set this out on the 30th of October.” STUDIO: ‘What is your opinion?' KINNOCK: ‘It's absolutely clear in our manifesto' STUDIO: ‘It's not clear to me. That's why I'm asking the question' KINNOCK: ‘Yeah, but obviously the definitions have to be seen in the round and that's what's going to be put on the table' STUDIO: ‘I mean, if you're either a working person or not, if you earn more than six figures and you pay a lot of tax and you're still working person, surely. I just was confused about what he meant' KINNOCK: ‘It's just would not be appropriate for me to speculate on what the chancellor's going to...' (Sky News, 21 October 2024, archived) 

o    Stephen Kinnock refused to say if someone earning more than £100,000 was a working person. STUDIO: ‘Explained to me, if you earn six figures, you're not a working person?' KINNOCK: ‘We made it absolutely clear that we won't be raising taxes on working people. That means VAT, National Insurance' STUDIO: ‘Even if you earn more than £100,000?' KINNOCK: ‘We will not be breaking any of those manifesto commitments. The Chancellor will set the budget out on the 30th of October, so there's not that long to wait' (Sky News, 21 October 2024, archived).   

·                     Wes Streeting said those on six figure salaries should not expect help at the Budget. Wes Streeting said that Labour's focus at the Budget would be ‘people who are on lower or middle incomes' (The Times, 21 October 2024, link).   

·                     Keir Starmer said working people were people who ‘don't really have the ability to write a cheque when they get into trouble'. Keir Starmer classified working people as ‘people who earn their living, rely on our [public] services and don't really have the ability to write a cheque when they get into trouble' (The Times, 19 June 2024, link).   

·                     Keir Starmer said his definition of working people could include those with more than a few thousand in savings. STUDIO: ‘So working people with a few thousand pounds of savings, that's about it. That's if you're thinking about how you want to help the most. If you become prime minister' STARMER: ‘You know, could be more savings, actually. But if you're working person, you work really hard' (GB News, 21 June 2024, archived).  

·                     James Murray could not give a definition of ‘working people'. STUDIO: ‘Chris says, to paraphrase (inaudible) my father was a labourer, and my mother was a cleaner. He's got in touch via text to say this. Raised on a rough council estate in Birmingham couldn't afford to go to university. I managed to get into IT and did okay. We own our own home, cleared our mortgage and have some savings as we didn't stretch ourselves. Is Chris a working person?' MURRAY: ‘Well, I think Chris- well I don't know Chris' exact circumstances' STUDIO: ‘I've just said...but what I've just said, is he not a working person? He doesn't fit the criteria you've set out, he managed to get into IT, he did okay, owns his own home, cleared a mortgage, has some savings. Is he not a working person?' MURRAY: ‘Well, as I say, I don't know Chris is circumstances, but if Chris pays income tax, National Insurance and VAT and he will know that we a Labour government, those taxes will not be increased because that is the pledge that we're going into the election with' (Times Radio, 19 June 2024, archived).  

·                     Dan Tomlinson stated small business owners were ‘working people'. STUDIO: ‘Alright, I mean when it comes back to who is a working person, I mean somebody who owns and runs a small business, are they not a working person?' TOMLINSON: ‘They are working people, Yes' (BBC 2, Politics Live, 15 October 2024, archived)  

Despite this confusion, Keir Starmer referred to himself as a ‘working person':  

·                     Keir Starmer referred to himself as a working person. STARMER: ‘I come within my own definition of a working person, which is earning my living, paying my taxes and knowing what it means to save money, and when you do save money, not wanting to use that money to get out of a cost-of-living crisis which is of the Government's making' (The Daily Mail, 19 June 2024, link).   

o    Keir Starmer had an income of £404,030 in 2022-23. According to his tax summary for 2022-23 Keir Starmer earned £128,291 from his salary as MP and Leader of the Opposition, as well as receiving additional income from the sale of assets (The Guardian, 16 February 2024, link).  

o    Keir Starmer is mortgage free on his £2 million London townhouse. Keir Starmer became mortgage free his London property in September 2024, which he bought in 2004 for £650,000. The north London property is now estimated to be worth £2 million (The Times, 29 September 2024, link).  

o    He also a bespoke ‘Keir Starmer QC' gold-plated, tax-unregistered pension (Hansard, 2 September 2024, PQ 2321, link). Ministers have refused to say how much this is now worth. In March 2014, it had a CETV value of £336,000 (Crown Prosecution Service, Annual Report and Accounts 2013–14, July 2014, link, p.73). Uprating by inflation, this unfunded pension would be in the region of half a million pounds today.