Starmer raises doubts over VAT pledge

Sir Keir Starmer has failed to rule out raising VAT seven times, despite Labour’s manifesto pledge that it would not increase the tax.

The Prime Minister would say only that “the manifesto stands” when asked whether he could raise the levy to ease pressure on public finances.

In its manifesto last summer, Labour had promised not to raise taxes on “working people” and made specific reference to income tax, National Insurance and VAT.

But on the first day of the party’s annual conference in Liverpool on Sunday, Sir Keir refused to be drawn into a specific pledge that VAT would not go up at the Budget, which is set to be announced on Nov 26.

Rachel Reeves, the Chancellor, is widely expected to impose a range of sweeping tax rises as she battles to fill a £20bn black hole in public finances.

Asked if he would rule out raising VAT in November, Sir Keir told the BBC’s Laura Kuenssberg: “I came into politics to change lives for the better, to change our NHS and make sure that it was fit for purpose.

“To win investment for jobs across the country, we’ve got record investment coming in.”

Challenged on whether he would rule out raising VAT to pay for that, Sir Keir ignored the question and pointed to recent investment in Sizewell C and progress on trade with the US.

Asked for a third time, Sir Keir said: “I am in politics to change lives. It’s not a popularity contest for me, it’s about changing lives.

“On the question of the Budget, the Budget will be in November as you know and I’m not going to sit here and set out what’s going to be in the Budget.”

Asked for a fourth time, the Prime Minister would say only: “The manifesto stands.”

On being challenged for a fifth time, he said: “We made commitments in that manifesto and that manifesto stands. The manifesto stands, Laura, I can’t be clearer than that.”

Pressed on whether the promise would stand “in perpetuity”, Sir Keir replied: “We put that manifesto before the electorate, we got elected and that manifesto stands.

“I’m not going to go through the details of what may be in the Budget. Obviously it’s two months away and no Prime Minister or no Chancellor would ever sit here and indicate two months out what may or may not be in the Budget.”

Asked if he could be “crystal clear” on VAT, Sir Keir said: “The manifesto stands. We made those commitments, we stand by those commitments.”

Kemi Badenoch, the Conservative leader, criticised Sir Keir’s refusal to rule out tax rises.

Mrs Badenoch said: “Keir Starmer failed three times to rule out a hike in VAT. Claiming that ‘the manifesto stands’ is not the same as saying ‘no rise in VAT’.

“The PM must rule out hiking VAT immediately, or working people will fear another Labour tax bombshell in the Budget.”

In January, Bridget Phillipson, the Education Secretary, imposed VAT on private school fees for the first time.

The raid has led to the closure of more than 50 private schools in the past year and prompted fears that the state sector could end up being overwhelmed.

Last week, Lord Kinnock, a former Labour leader, urged the Chancellor to launch a VAT raid on private healthcare, an idea that has also been backed by think tanks with ties to Labour.

He claimed the policy would raise £2bn in “vital funding for the NHS and social care”.

[Source: Daily Telegraph]