Politics

Keir Starmer Refuses to Rule Out Further Tax Rises Amid Tory Pressure

Published on May 22, 2025

Prime Minister Keir Starmer has come under fire after refusing to rule out further tax increases this year, during a heated exchange in Parliament with Conservative leader Kemi Badenoch.

The clash followed revelations that Deputy Prime Minister Angela Rayner had advocated for a £4 billion tax hike targeting wealthier individuals in the run-up to the Spring Statement earlier this year.

Speaking in the Commons, Badenoch issued a direct challenge to the Prime Minister: “As if we haven’t suffered enough. People out there are struggling. Businesses are struggling. People are losing their jobs. We cannot have more tax rises. Will the Prime Minister rule out new tax rises this year?”

Starmer declined to give a definitive answer, prompting Badenoch to criticise the lack of clarity and accuse the government of internal disarray. “He didn’t rule it out. His Cabinet is in open warfare. The Deputy Prime Minister clearly calling the shots,” she said to Daily Express.

“What is it that we’ve learned? We’re heading for new tax rises. We know inflation is up. It’s just more and more bad news from a Prime Minister who has lost control.”

While Starmer did not confirm or deny potential tax increases, he did unveil one upcoming policy aimed at easing financial pressure for some Britons — an expansion of eligibility for the winter fuel allowance, which will be announced during the Autumn Budget.

However, the Prime Minister’s reluctance to rule out new taxes drew criticism from campaigners and business leaders alike. John O’Connell, chief executive of the TaxPayers’ Alliance, voiced concern about the government’s fiscal direction: “Taxpayers will be rightly nervous to hear the Prime Minister refuse to rule out further tax rises this year.

“After clobbering small businesses and farmers, this government is now eyeing up a tax raid on savers and freezing the additional rate income tax threshold. “Starmer should immediately make clear that future tax rises are not looming over the heads of hard-working Brits.”

The exchange comes at a time of economic uncertainty, with inflation remaining stubbornly high and small businesses across the country feeling the strain from rising operational costs and stagnant consumer spending.

While Labour maintains that its fiscal policies aim to stabilise the economy and support public services, critics argue that further tax hikes could push already-struggling households and enterprises to the brink.

The Prime Minister’s Budget statement this autumn is now expected to be a critical moment for the government’s economic credibility — and for its promise not to burden working families further.

(Image: PA)