LONDON (Reuters) -Britain's ruling Labour Party remains committed to its pre-election tax pledges, including on income tax, minister Nick Thomas-Symonds told Sky News on Friday, ahead of next month's
UK government stands by its pledge on income tax, minister
UK Government's Tax Commitments
LONDON (Reuters) -Britain's ruling Labour Party remains committed to its pre-election tax pledges, including on income tax, minister Nick Thomas-Symonds told Sky News on Friday, ahead of next month's budget.
Current Tax Policies
Reeves and Prime Minister Keir Starmer told voters before last year's election that they would not raise the rates of social security contributions, value added tax (VAT) or income tax on what they called "working people".
Potential Changes in Budget
The Guardian on Thursday reported that finance minister Rachel Reeves was considering raising income tax in the budget to help close a multibillion-pound deficit.
Economic Implications
"We stand by our manifesto pledges on VAT, on national insurance and on income tax," Thomas-Symonds said when asked about the Guardian report.
In her first budget last year, Reeves increased the rate of social security contributions, or National Insurance Contributions, paid by employers but said she remained committed to not raising the tax burden on working people.
The Guardian said officials were weighing options including an increase in the basic rate of income tax or changes to thresholds, though no final decision has been made.
Earlier this month, the National Institute of Economic and Social Research said that Reeves should break her promise on income tax rather than attempt to raise the £30 billion ($40.26 billion) in revenue she is expected to need in more economically damaging ways.
($1 = 0.7451 pounds)
(Reporting by William James;Writing by Catarina Demony)
