Minister says only ‘average incomes’ up to £39k safe from Reeves’ tax hikes
A government minister has said that Labour will stick to its manifesto commitment not to raise personal taxes, at least for those on “average incomes” – earning up to £39,000.
Successive ministers over multiple days of media rounds have been caught in an increasingly tangled mess of definitions of what it means to be “wealthy”, “working” and, crucially, who will be exempted from tax hikes.
On Tuesday morning, roads minister Lilian Greenwood was urged to clarify in an interview with Sky News what transport secretary Heidi Alexander meant by “modest incomes” when interviewed by the same channel over the weekend.
Greenwood said that her boss was using “common sense language”, adding: “It’s people who work for a living. People who get a payslip.”
Sky News presenter Matt Barbet interjected: “Well, I work for a living and get a payslip.”
In the hot seat yesterday on LBC, Chief Secretary to the Treasury Darren Jones first introduced the idea that Labour’s definition of “working people” applies to “anyone that gets a payslip, basically”.
Everyone in full time employment receives a payslip detailing their income and the deductions made to HMRC, at any salary.
Who exactly is ‘wealthy’?
She highlighted the government’s taxes on private school fees and on non-doms – both of which have been criticised for contributing to an accelerating wealth drain from the UK.
And in what has become a regular refrain from the government, Greenwood dropped further hints around those with the “broadest shoulders” taking on more of the burden.
“Clearly, this is a decision for the Chancellor. But, clearly, we’ve always said, those who’ve got the broadest shoulders should bear the greatest burden.”
When pressed again on what exactly the government means by “modest” and “broad shoulders”, Greenwood said: “Well, I think people can see exactly what this Labour government is about.”
Asked directly by Richard Madeley on Good Morning Britain whether income tax would rise, she said: “I’m not going to speculate on what Rachel Reeves is going to do at the next Budget.”
She conceded that “at the last Budget we did make some unpopular decisions”.