SIR Keir Starmer has refused to rule out a VAT tax rise at the Budget.
The Prime Minister failed to dismiss the idea of an increase with an expected £30 billion black hole to fill this autumn.
Sir Keir, speaking to the BBC this morning, insisted that the “manifesto stands” when asked whether there would be a VAT increase.
But the Tories immediately seized on the comments amid concerns the position may not last until the Budget at the end of November.
Asked whether he could rule out a VAT rise, the PM said: “We put that manifesto before the electorate. We got elected and that manifesto stands.
He told the BBC’s Sunday With Laura Kuenssberg programme: “I’m not going to go through the details of what may be in the Budget.
“Obviously, it’s two months away and no prime minister and no chancellor would ever sit here and indicate two months out what may or may not be in the Budget.”
Labour went into the election vowing not to raise taxes on working people with income tax, VAT and national insurance singled out.
The standard rate of VAT in this country is currently 20 per cent.
The PM also refused to be drawn when pushed on whether the manifesto stands and whether it will last to a later date.
He said: “We put that manifesto before the electorate, we got elected, and that manifesto stands.
“I’m not going to go through the details of what may be in the Budget, obviously it’s two months away and no Prime Minister and no chancellor would ever sit here and indicate two months out what may or may not be in the Budget.”
But Tory leader Kemi Badenoch said: “Keir Starmer just failed three times to rule out a hike in VAT.
“Claiming that ‘the manifesto stands’ is not the same as saying ‘no rise in VAT’.
“The PM must rule out hiking VAT immediately, or working people will fear another Labour tax bombshell in the budget.”
One option for the Chancellor Rachel Reeves to help fill the £30 billion financial black hole will be to extend income tax thresholds.
This will drag more people into paying higher rates of income tax but will add around £10 billion to Treasury coffers.
