No tax rises in payslips for ‘working people’, vows minister

Labour Education Secretary Bridget Phillipson assured “working people” that they would not experience higher taxes on their payslips following Wednesday’s Budget. During the election, Labour pledged not to raise National Insurance, income tax, or VAT on workers, though ministers are now under pressure to clarify who exactly qualifies as ‘working people.’

In an interview with Laura Kuenssberg, Phillipson defined the manifesto commitment as referring to individuals whose primary income comes from their labor. However, she refrained from commenting on whether business owners fall into the same category.

On the other side, Conservative shadow science secretary Andrew Griffith criticized Labour for entering government with what he described as a “false prospectus,” suggesting they had misled the British public regarding the ease of their plans. Shortly after taking office, the Labour government accused the Conservatives of creating a “£22bn black hole” in the public finances.

In a bid to avoid cuts to public spending, Chancellor Rachel Reeves is expected to propose tax increases in next week’s Budget. Potential changes include raising taxes on asset sales like shares and property, adjusting inheritance tax, and maintaining the freeze on income tax thresholds. This freeze could shift more individuals into higher tax brackets and potentially generate an estimated £7bn for the government.

Phillipson, while addressing the Budget specifics, emphasized, “When people look at payslips they will not see higher taxes. That is a very clear commitment.” She further noted the government’s goal to “break the doom loop of ever higher taxes on working people and lower growth.” When asked if her own salary, which could reach up to £160,000, qualifies her as a working person, she stated, “My income derives from my job and I’ll pay whatever taxes are required of me.”