Budget: No tax rises in payslips for 'working people', says Bridget Phillipson


Education Secretary Bridget Phillipson has assured working people that their payslips will not be subject to increased taxes in the upcoming UK Budget. The Labour party had previously pledged not to increase National Insurance, income tax or VAT on working people; however, the definition of who this covered had not been defined precisely. Phillipson clarified that the promise referred to people whose primary source of income was employment, but did not specify whether business owners would be included in this group.

Conservative shadow science secretary Andrew Griffith has accused the government of lying to the British people by coming to power on a false prospectus. Shortly after taking control, the Labour government claimed that the Conservatives had left a £22 billion hole in public finances. The current government is reportedly considering tax rises, including an increase in taxes on asset sales, such as property and shares, and adjustments to inheritance tax and income tax thresholds. Continuing the previous government’s tax threshold freeze could see more individuals move into higher tax bands, potentially providing the government with an estimated £7 billion in additional revenue.

Speaking on Sunday, Phillipson indicated that she could not supply specific details of what would be included in the Budget, but reiterated Labour’s commitment to avoiding higher taxes on working people, stating that this was a clear commitment. She added that the government wanted to reduce taxes on working people in order to break the cycle of ever-rising taxes and reduced growth. When asked if she, as a minister earning up to £160,000, would count as a working person, Phillipson replied that her income was derived from her job and that she would pay whatever taxes were required of her.

Griffith questioned whether a small business owner earning £13,000 would be considered a working person. Phillipson declined to reveal whether such individuals would be affected by the tax measures, claiming she could not provide details of what might happen. The chancellor is expected to announce a rise in the National Insurance rate for employers, with the hope of raising £20 billion. Critics argue that such a rise could make it more difficult for companies to employ staff, potentially slowing economic growth.

The government has also revealed that it intends to invest £44 million in assisting kinship and foster carers and intends to support the rebuilding of 50 schools in England at a cost of £1.4 billion per year. Former Bank of England economist Andy Haldane has dismissed distinctions between working people, stating that it is highly unlikely that any groups will avoid paying increased taxes as the government seeks to address public finances

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