Budget 2024: Minister refuses to rule out tax rises for people earning more than £100,000 | Political news

A government minister has refused to rule out tax increases for seniors.

Stephen Kinnock dodged the question nine times when Sky News’ Kay Burley asked whether people earning more than £100,000 a year are “working people”, according to Labour’s definition.

The Labor manifesto pledged not to raise national insurance, VAT or income tax for “working people”.

However, the party has not revealed its exact definition of “working people”, sparking concerns that it is preparing to raise taxes for certain groups in the October 30 budget, including those earning more than 100,000 free

Currently, people earning between £50,271 and £125,140 pay 40% tax on that income and those earning more than that pay 45%. People earning more than £100,000 currently also have smaller personal allowances.

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Health Secretary Wes Streeting, speaking to Sky News’ Trevor Phillips on Sunday, warned that high earners should not expect help in the Budget, suggesting it would focus on “people on low and middle incomes”.

Pressed today, Health Secretary Kinnock said he would not speculate, adding: “The chancellor will set it out on October 30.”

He insisted the government “would not break any of these manifesto commitments”.

The definition of “working person”, he said, “must be seen in the round and this is what will be put on the table on October 30”.

He added that Chancellor Rachel Reeves will make the definition of working people “absolutely clear” during her Budget announcement.

Sir Keir Starmer’s spokesman, when asked whether someone earning six figures is a working person, also sidestepped the question and returned to Mr. Kinnock.

Ms Reeves has been saying for months that the budget will be “tough” and recently revealed she is aiming to fill a £40bn black hole – far bigger than the £22bn Labor said it would the conservatives left them.

On Sunday, Streeting refused to rule out freezing tax thresholds, which would see more people dragged into higher tax bands.

The row over Labour’s definition of “working people” has intensified in recent weeks as it emerged that Ms Reeves is expected to lift national insurance for employers.

Labor claimed this would not be a breach of its manifesto, as it only promised not to raise taxes on workers.

During the election campaign in June, Sir Keir Starmer said that “working people” are those who work but do not have significant savings.

said Mrs. Reeves they are “people who go out to work”leaving voters none the wiser.

Read more:
Could Reeves change labor tax rules to raise money?
What can be in the budget?
What tax increases could Labor introduce?

Capital gains tax, paid on the sale of shares and other assets, is expected to rise to 33% or more, but not as high as 39%.

The current rate for the highest income ranges from 20% to 28% depending on the type of asset.

An increase will be seen as a wealth tax, as only around 350,000 people a year pay capital gains, but contribute £15bn in tax revenue, according to the Institute for Fiscal Studies.

Ms Reeves is also expected to reduce some cuts in the inheritance tax system and could keep council tax increases at 5% a year.

Motoring organizations have voiced their concern over Labor increasing fuel taxes for the first time in 14 years by not continuing the 5p cut.