The prime minister also rejected claims he had waged a “war on middle Britain”.
Labour made manifesto pledges to not hike taxes on what it described as “working people,” explicitly ruling out increases to VAT, national insurance, and income tax. But the chancellor Rachel Reeves is now expected to increase national insurance for employers, rather than employees, a move Labour insiders believe does not break any pledge.
Sir Keir’s comments on working people have also fuelled fears of other tax hikes, even though Downing Street later rowed back saying those with small amounts of savings in stocks and shares still counted as “working people” and that the Labour leader had meant someone who primarily gets their income from assets. Among the levies that could be raised are capital gains tax, inheritance tax, and fuel duty.
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