UK minister denies reports of income tax hike on working people 

WEB DESK: Britain’s ruling Labour Party has reaffirmed its commitment to its pre-election tax promises, rejecting speculation that it might raise income tax to plug a growing fiscal gap. 

Speaking to Sky News on Friday, minister Nick Thomas-Symonds made it clear that the party intends to keep its word to voters. “We stand by our manifesto pledges on VAT, on national insurance and on income tax,” he said, addressing reports that the government could be considering changes in next month’s budget. 

The clarification came a day after The Guardian reported that Finance Minister Rachel Reeves was weighing the possibility of increasing income tax to tackle a multibillion-pound deficit. The report suggested that officials were exploring options such as adjusting the basic rate of income tax or altering tax thresholds, though no final decision has been made. 

Pressure builds ahead of budget 

Before last year’s election, Reeves and Prime Minister Keir Starmer had both assured voters that Labour would not raise income tax, VAT, or social security contributions for what they called “working people.” However, with the government now facing a challenging fiscal landscape, speculation has mounted about potential shifts in policy. 

In her first budget last year, Reeves increased National Insurance Contributions for employers but reiterated that her government remained committed to not raising the overall tax burden on workers. 

Adding to the debate, the National Institute of Economic and Social Research earlier this month suggested that Reeves should consider breaking her income tax pledge rather than seeking to raise the £30 billion (around $40 billion) through measures that could be more harmful to economic growth. 

With the next budget approaching, the government faces growing pressure to balance its fiscal credibility with its political promises. For now, Labour insists that its pre-election tax commitments still stand.