Labour's Budget could contain tax rises for two groups of people as Keir Starmer drops major hint

Keir Starmer has suggested that he may raise taxes on anyone who receives income from owning property and shares, hinting at a potential increase in capital gains tax in the forthcoming Budget next week. The Prime Minister did not include those who work but earn through shares and property within his definition of a 'working person', stating: "Well they wouldn't come within my definition."

Labour has promised not to raise taxes such as VAT, national insurance, and income tax on working people, a pledge both he and Chancellor Rachel Reeves are eager to maintain. However, amid widespread speculation, it's thought that Reeves is contemplating tax increases in other areas to tackle the £22 billion deficit in public finances left by the Tories.

There are rumours that she might be considering up to £40 billion in tax hikes and spending cuts to fill this fiscal gap and protect public services from further reductions. Starmer, while attending a Commonwealth summit in Samoa, remained vague about the specifics of tax changes, stating in a TV interview: "We're going to have to make difficult decisions in the Budget."

READ MORE: Bills expert says 'millions missing out' on £150 boost and DWP cash

When asked if he would consider himself a working person, his response clarified his position: "I would define a working person as somebody who goes out and earns their living, usually paid in a monthly cheque," he said, as reported by the Mirror.

He went on to explain: "Who I have in my mind's eye when I make decisions as prime minister are the sorts of working people who go out, work hard, and maybe save a bit of money but don't have the wherewithal to write a check to get out of difficulties if they or their family get into difficulties."

Adding to his point, he stated, "Now that's perhaps who I have in my mind's eye. People who've got that anxiety, if you like, in the bottom of their stomach that says, 'we're doing all right but should something happen to me and my family, they haven't actually got the wherewithal to get out of that problem'."