- Keir Starmer has not ruled out tax rises in the autumn budget, facing pressure to address a projected £50 billion shortfall in the government’s finances.
- Leading economists, including the economic think tank, National Institute of Economic and Social Research (NIESR), warn that tax increases or a relaxation of borrowing rules are necessary to cover the financial gap.
- Suggested tax options include potential rises in VAT, income tax, and corporation tax, alongside proposals for a levy on banks, wealth taxes, 'sin taxes', and increased fuel duty.
- Starmer maintains that Labour has stabilised the economy since taking power, citing interest rate cuts and wage increases, and pledges the Budget will focus on improving living standards.
- The NIESR also reported that the living standards of the poorest 10 per cent of households have declined by 1.3 per cent under Labour, remaining 10 per cent below pre-COVID levels.
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