Starmer refuses to say if he stands by pledge not to raise taxes
Senior Labour ministers fear that rumoured plans to raise income tax by 2p could significantly backfire, breaking a manifesto pledge and eroding voter trust.
The Treasury is reportedly considering a 2p income tax increase alongside a 2p cut in national insurance, despite Labour's commitment not to raise income tax, VAT, or employee national insurance contributions.
Key cabinet members, including Darren Jones, Pat McFadden, Shabana Mahmood, and Steve Reed, have reportedly expressed concerns over the potential tax hikes.
Leading pollsters, such as Professor Sir John Curtice, have likened the potential move to the Liberal Democrats' damaging 'tuition fee moment' in 2010.
The Chancellor faces a financial shortfall of between £30bn and £40bn, with economists urging an income tax rise, while some ministers advocate for exploring welfare savings instead.