Keir Starmer approves controversial Budget tax raid
SIR Keir Starmer has approved a significant decision to freeze income tax thresholds, a move expected to generate £8 billion in revenue, Chancellor Rachel Reeves has confirmed, reports BritPanorama.
The Chancellor articulated that the decision followed a series of collaborative meetings, emphasizing a team approach in the planning stages. Starmer was reportedly made fully aware of “all of the numbers and all of the options” before finalizing the decisions.
In response to questions from the Treasury select committee, Reeves noted that she and Starmer met frequently during the Budget process, highlighting a close partnership. She stated, “We took him through all of the numbers and all of the options and we decided it together as a team, because that is what the Prime Minister and I am.”
Further revelations from Reeves indicate that an inquiry into a leak regarding plans to abandon an income tax rise would include scrutiny of Ministers alongside civil servants. She also addressed criticism from Conservative MP Dame Harriet Baldwin, who claimed the Budget lacked new growth measures.
Reeves pointed to plans for significant infrastructure projects as counterarguments, including planning reforms and the approval of a new film studio in Buckinghamshire. While the government’s financial cushion was increased from £10 billion to £22 billion, Reeves pledged to take corrective actions to enhance public finances as necessary.
The overall Budget was characterized by a £26 billion increase in taxes, but the pensions triple lock will remain intact throughout this Parliament. Nonetheless, the British Chambers of Commerce has expressed skepticism regarding the Budget’s potential to invigorate the economy.
Despite a slight upward revision of growth to 1.4 per cent for this year, critics predict that business investment will significantly decline going forward, from 3 per cent in 2025 to just 0.9 per cent in 2026. David Bharier from the BCC remarked, “last month’s Budget is unlikely to be a growth game-changer for the UK economy,” suggesting a continued stagnation in economic momentum.
The fiscal policies outlined in this Budget illustrate significant tensions within the UK’s economic strategy, as the government grapples with the dual pressures of fiscal restraint and the need for growth.
