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Keir Starmer has refused to rule out freezing income tax thresholds at the budget next week. The UK’s prime minister declined to answer numerous questions from Kemi Badenoch on the issue, which she said would be a breach of Labour’s manifesto. Rachel Reeves was branded the ‘clueless chancellor’ by the Conservative leader at prime minister’s Questions, as she warned of the ‘real anxiety’ caused by speculation. The chancellor is widely expected to raise taxes on November 26 in order to fill a multibillion-pound gap in her spending plans. Opposition politicians, think tanks and campaign groups have called on Reeves to focus her plans on the wealthiest instead of pursuing broad-based tax rises. In the Commons on Wednesday, Badenoch repeatedly pressed the prime minister to confirm whether he will freeze income tax. She said: ‘This is the first budget to unravel before it’s even been delivered. The chancellor’s cluelessness, I’m afraid, is damaging the economy now. The prime minister needs to end this shambles. ‘So, can he confirm today that he won’t break another promise by freezing income tax thresholds?’ Responding, Starmer said: ‘The budget is one week today and we will lay out our plans. I’ve said what we will do in terof protecting the NHS and public services. ‘What we won’t do is inflict austerity on the country as they did. What we won’t do is inflict a borrowing spree like Liz Truss did.’ The Tory leader went on to say: ‘It is quite clear that they are going to freeze thresholds. ‘We didn’t get a clear answer from them but this is really important, because in her budget speech last year, the chancellor said, and I quote: ’I am keeping every single promise on tax that I made in our manifesto.’ ‘So, there will be no extension of the freeze in income tax and national insurance thresholds. Why was freezing thresholds a breach of the manifesto last year, but it isn’t this year?’ Starmer replied: ‘Every week she comes along and speculates and distorts.’ He added: ‘They opposed NHS investment and what did we get? Five million extra appointments in the first year of a Labour government. ‘They tried growing the economy with millions on NHS waiting lists, with our schools crumbling and holes in our roof. It didn’t work. ‘What do they want to do now? Go back to the same failed experiment.’ Badenoch later said: ‘The budget chaos is causing real anxiety. ‘People aren’t buying houses, businesses aren’t hiring, and they are cancelling investment decisions. ‘Two weeks ago, the chancellor called a ridiculous press conference to blame everyone else for her having to raise income tax. ‘Then last week, she U-turned on her own U-turn instead. ‘We can see they’re planning to freeze income tax thresholds, something she said last year would be a breach of their manifesto. ‘They are making it up as they go along. Doesn’t the country deserve better than government by guesswork?’ Starmer replied: ‘Either we renew our country with Labour or we go back to austerity 2.0 with Reform or the Tories. ‘They left waiting lists at record highs, almost a million more children in poverty, and they wrecked our public services. ‘She comes here to talk down the country. We’re turning the page more NHS appointments, free breakfast clubs, free childcare, more homes and better public services. ‘That’s what we’re fighting for a Britain built for all.’ Following PMQs, a Conservative Party spokesperson said: ‘The prime minister repeatedly failed to repeat the promise made by the chancellor in her budget last year to end the freeze on income tax thresholds. ‘Rachel Reeves said any freeze in thresholds would be a breach of the Labour manifesto and would ’hurt working people’. If she doesn’t end the freeze at the budget next week, it will be yet another broken promise from a government that has lost the trust of the British people.’ In a letter to the chancellor, Green Party leader Zack Polanski called for a wealth tax along with changes to capital gains tax to bring it in line with income tax. It called for wide-ranging measures to cut energy bills, control rents and abolish the two-child benefit cap. Polanski said: ‘Our message to Rachel Reeves is simple: cut bills, tax billionaires.’ By Rhiannon James, George Thompson and Will Durrant, PA Political Staff source: PA Copyright 2025 Alliance News Ltd. All Rights Reserved.
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