Starmer forced to deny breaking Labour manifesto as experts sound dire warning over Budget plans
Starmer gives two reasons why tax-raising Budget was needed
- Rachel Reeves's Budget has been criticised by leading economists for failing to boost Britain's economic growth.
- The Institute for Fiscal Studies (IFS) and the Office for Budget Responsibility (OBR) both issued damning assessments, stating the Budget lacked measures to significantly impact growth.
- Sir Keir Starmer faced accusations of breaking Labour's manifesto pledge not to raise taxes for working people, primarily due to the extended freeze on tax thresholds.
- The IFS explicitly stated that the freeze on income tax thresholds constituted a breach of Labour's manifesto promise regarding tax increases.
- Starmer defended the tax-raising Budget as necessary for public services and to combat child poverty, while also defending the decision to abolish the two-child benefit cap.