More Budget chaos as a tax on high earners is ruled out

No 10 forced to clarify those earning six-figure salaries were 'working people' after another day of confused messaging

- DAVID MADDOX, MILLIE COOKE

Sir Keir Starmer’s government was hit by another day of Budget chaos yesterday after Labour was bounced into conceding that individuals earning above £100,000 are still “working people”.

On a day when the prime minister had hoped to get a grip on the political agenda with the launch of a major consultation over the future of the NHS, Sir Keir faced another series of rows and speculation over whether Rachel Reeves was planning further taxes on the rich.

In its manifesto, the party promised not to raise “taxes on working people” – specifiying national insurance, income tax and VAT. But ahead of next week’s Budget, minister of state for care Stephen Kinnock refused to clarify whether those earning £100,000 or more will be protected by the pledge – or if they are instead set to face tax hikes as the chancellor attempts to fill a £40bn black hole in Labour’s spending plans.

The row is just the latest chapter after weeks of confusion that has dogged the Labour government in the lengthy run-up to its first Budget. Senior figures from Labour’s past have already questioned why Ms Reeves delayed so long to unveil her statement.