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Now high earners are in Labour’s crosshairs: Minister refuses to say whether pledge not to hit ‘working people’ extends to higher earners – fearing ‘stealth’ raid will lead to tax hikes for 600,000 more people
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Now high earners are in Labour’s crosshairs: Minister refuses to say whether pledge not to hit ‘working people’ extends to higher earners – fearing ‘stealth’ raid will lead to tax hikes for 600,000 more people

The minister dodged a question today about whether people on higher incomes are now considered “working people” after Wes Streeting hinted they would be hammered in the Budget.

Health Secretary Stephen Kinnock has repeatedly refused to answer as he was questioned over whether protections promised by Labor at the election extended to those earning six figures.

The party ruled out raising core income tax rates before coming to power, but Chancellor Rachel Reeves is expected to propose a range of other measures to punish wealthier Britons.

Asked on Sky News whether people earning more than £100,000 a year were “working people” and therefore eligible for protection under Labour’s definition, Mr Kinnock simply replied: “We have made it absolutely clear that we will not raise taxes on workers, which means we will not raise taxes on workers. VATNational Insurance and Income Tax.”

Now high earners are in Labour’s crosshairs: Minister refuses to say whether pledge not to hit ‘working people’ extends to higher earners – fearing ‘stealth’ raid will lead to tax hikes for 600,000 more people

Health Secretary Stephen Kinnock has repeatedly refused to answer as he was questioned over whether protections promised by Labor at the election extended to those earning six figures.

It emerged Ms Reeves was likely to extend the freeze on tax thresholds beyond the current 2028 end date.

The IFS think tank estimates the move will result in a further 600,000 people paying higher and additional tax rates by 2029.

This will mean the number of people paying the 40p rate, which applies to incomes between around £50,000 and £125,000, will top 3 million for the first time.

In a series of interviews yesterday, Health Secretary Mr Streeting said he was not worried about people earning six figures.

“When I think about this budget and its implications, I don’t really think about the people on my salary or your salary,” he told Sky News’ Trevor Phillips on Sunday Morning.

“I think about people like my mother, who works as a cleaner, or my father, who sells cars.

“Low-to-moderate-income people who find themselves at the end of the month with more month than money left.”

Mr Streeting, who earns £159,000 as an MP and Cabinet minister, added: “I’m not worried about myself, I’m not worried about you, but I’m worried about the people who are struggling to get by at the moment. ends meet.”

Fears are growing that Ms Reeves will introduce one of the biggest tax hikes in history.

Respected think tank IFS has warned Ms Reeves needs to push for an increase of around £25 billion on 30 October. if it wants to avoid austerity measures and meet Labour’s manifesto commitments.

Fears are growing that Ms Reeves will introduce one of the biggest tax hikes in history.

Fears are growing that Ms Reeves will introduce one of the biggest tax hikes in history.

In a series of interviews yesterday, Health Secretary Mr Streeting said he was not worried about people earning six figures.

In a series of interviews yesterday, Health Secretary Mr Streeting said he was not worried about people earning six figures.

However, other analysts suggest the total could be even higher, at £30 billion. Treasury sources said the “black hole” on the books could require a £40 billion tax rise and spending cuts.

But there are signs of growing concern within the government that already struggling Britons will have the money.

With the Treasury now in a “tunnel” of disputes with watchdog the OBR, there have been jibes about the “mess”.

There are rumors that manifesto measures such as introducing VAT on private school fees and tightening the non-household policy will not achieve the expected results.

And barring changes to general income tax, VAT and national insurance rates, the chancellor will have to rely on a series of smaller raids, the consequences of which are very difficult to predict.