LANDLORDS and shareholders are braced for a bruising Budget after Sir Keir Starmer warned they do not count as “working people”.
The PM has put people with “assets” in the crosshairs of next week’s tax raid that will look to raise billions.
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But he was accused of “straight up lying” to voters by gearing up for a cash grab despite assurances during the election.
The PM had promised to freeze rates of income tax, national insurance and VAT as part of a bid to protect “working people”.
Chancellor Rachel Reeves has since confirmed that the national insurance pledge only refers to employee contributions – leaving bosses fearing a sting next week.
Yet hikes to capital gains taxes are also on the cards, sparking a row that it could strangle growth while also punishing workers.
Asked for his definition of “working people”, Sir Keir told Sky it was someone who “goes out and earns their living, usually paid in a sort of monthly cheque” but cannot “write a cheque to get out of difficulties”.
Pressed if this included people with assets, said: “Well, they wouldn’t come within my definition.”
Tory shadow minister Claire Coutinho blasted: “Keir Starmer went into an election saying he’d protect working people only to define that as a subset of people with jobs once he won.
“Labour either had no plan for post election or straight up lied to the public on multiple fronts.”
The warning came as Ms Reeves sparked fears of mortgage rate pain after ripping up her debt rules.
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The Chancellor last night confirmed plans to change the way national debt is calculated to hand herself up to £50billion more to play with at next week’s Budget.
It will let her embark on a massive borrowing spree to fund key manifesto pledges while still claiming to have met her promise to have debt falling in five years’ time.
But the financial fiddling risks spooking the markets in a Liz Truss-style panic, with government borrowing costs sent soaring yesterday as a result.
Shadow Chancellor Jeremy Hunt said the move could force interest rates to remain high for longer and wreak more misery on homeowners remortgaging.
What is the Budget?
THE Budget is big news and where you’ll often hear announcements about taxes. But what exactly is it?
The Budget is when the Government outlines its plans for the economy including taxation and spending.
The Chancellor of the Exchequer delivers a speech in the House of Commons and announces plans for things like tax hikes, cuts and changes to Universal Credit and the minimum wage.
At the same time, the Office for Budget Responsibility (OBR) publishes an independent analysis of the UK economy.
Usually, the Budget is a once-a-year event and usually takes place in the Autumn, with a smaller update known as the Spring Statement.
But there have been exceptions in recent years when there have been more updates, or the announcements have taken place at different times, for example during the pandemic or when there is a General Election.
On the day of the Budget, usually a Wednesday, the Chancellor is photographed outside No 11 Downing Street with the red box.
She then heads to the House of Commons to deliver her speech, at around 12.30 following Prime Minister’s Questions (PMQs).
Changes announced in the Budget are sometimes implemented the same day, while others may not have a set date.
For example, a change to tobacco duty usually happens on the same day, pushing up the price of cigarettes.
Some tax changes are set to come in at the start of a new tax year, which is April 6.
Other changes may need to pass through Parliament before coming into law.
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