Starmer refuses to rule out tax rises in budget after questioning by Badenoch

Keir Starmer has refused to rule out tax rises in next month’s budget, which would breach Labour’s manifesto promises, boosting speculation that Rachel Reeves is considering raising income tax to reduce a shortfall.

The prime minister pointedly ignored questions posed to him by Kemi Badenoch in the Commons about the manifesto pledge, something the Conservative leader said he had not done when asked before.

The Guardian revealed this month that Reeves, the chancellor, was in active discussions about potentially raising income taxes as she looks for ways to clear an estimated shortfall of more than £30bn.

“Last year in its manifesto, Labour promised not to increase income tax, not to increase national insurance and not to increase VAT. Does the prime minister still stand by his promise?” Badenoch asked.

Starmer gave a lengthy answer, which talked up what he said was a buoyant economy, but did not mention tax, in contrast to previous responses in which he – and other ministers – had said they would “stand by” the manifesto.

“The budget is on 26 November, and we will lay out our plans, but I can tell the house now that we will build a stronger economy, we will cut NHS waiting lists and deliver a better future for our country,” he said.

Badenoch replied: “That is a fascinating answer. It is not the same answer that I received when I asked exactly the same question, word for word, on 9 July. Then the prime minister replied with just one word, “Yes”, and then he sat down with a smug grin on his face. What’s changed in the past four months?”

In response, Starmer said: “As she well knows, no prime minister or chancellor will ever set out their plans”. He went on to talk about growth in the economy and new trade deals, ending: “They broke the economy. We’re fixing it.”

On 9 July, when Badenoch asked the same question, and received an answer of “Yes”, the Tory leader replied: “It is rare that the prime minister is able to give a clear answer, but I am glad that he has done so now.”

Starmer’s press secretary declined to repeat the previous position that the Labour manifesto commitments on not raising VAT, income tax or national insurance remained. “We’re not going to pre-empt the budget,” she added.

Some advisers in the Treasury and No 10 believe that raising income tax may be the only way to ensure Reeves raises enough money never to have to come back for tax rises again in this parliament.

But Reeves is understood to be nervous about the political consequences of such a major abandonment of the party’s previous pledges, especially given she broke them to raise national insurance last year.