UK PM Starmer Refuses to Rule Out Tax Hikes Amid Budget Deficit

Prime Minister Keir Starmer has declined to reaffirm Labour's manifesto pledge not to raise major taxes such as national insurance, income tax, or VAT ahead of the upcoming Autumn Budget. Despite repeated questioning by Conservative leader Kemi Badenoch, Starmer avoided guaranteeing that taxes on workers would not increase, citing better-than-expected economic indicators like retail sales and growth forecasts. The government faces a significant fiscal challenge, with reports indicating a potential £22 billion to £35 billion budget shortfall driven by lower productivity forecasts, higher borrowing costs, and inflation pressures. Chancellor Rachel Reeves is reportedly considering tax increases, including on income tax, to bridge the gap, though this risks breaking key election promises and could affect economic growth. Labour insiders are divided, with some advocating for income tax hikes as a pragmatic revenue source, while others warn of political fallout. The budget announcement on November 26 will be a critical test of Labour's fiscal credibility and plans for addressing the financial shortfall.