Keir Starmer reveals huge hint about Budget tax rises for two key groups

Keir Starmer has hinted he may increase taxes on individuals whose income stems from property and shares, suggesting a possible rise in capital gains tax in the upcoming Budget next week. The Labour leader did not classify someone who works but gets earnings through shares and property within his definition of a 'working person'.

He said: "Well they wouldn't come within my definition."

Labour has pledged to refrain from raising taxes such as VAT, national insurance, and income tax on working people, a commitment both he and Chancellor Rachel Reeves are keen to uphold. However, amidst rampant speculation, it's believed that Reeves is considering tax hikes in other areas to address the £22 billion black hole in the public finances left by the Tories.

There's talk that she might be contemplating up to £40billion in tax rises and spending reductions to fill this fiscal void and shield public services from further cuts. Starmer, attending a Commonwealth summit in Samoa, remained noncommittal about the specifics of tax adjustments, telling a TV interview: "We're going to have to make difficult decisions in the Budget."

When asked if he would consider himself a working person, his response was clarifying his stance: "I would define a working person as somebody goes out and earns their living, usually paid in a monthly cheque," he said, according to the Mirror.

He elaborated: "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.

"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'."