Sir Keir Starmer has declined to rule out a freeze on income tax thresholds, as he answered his final round of questions in the Commons before his government’s highly anticipated Budget next week.
The prime minister faced questions from Kemi Badenoch at PMQs, after inflation fell to 3.6 per cent in October in a pre-Budget boost to the chancellor.
Referring to speculation about the Budget, Ms Badenoch labelled it the “first to unravel before it's even been delivered”.
When asked whether he would rule out freezing income tax thresholds, he said: “The Budget is one week today and we will lay out our plans.
“I’ve said what we will do in terms of protecting the NHS and public services. What we won’t do is inflict austerity on the country as they did. What we won’t do is inflict a borrowing spree like Liz Truss did.”
The prime minister and chancellor have faced fierce scrutiny ahead of next week’s Budget announcement, with a raft of tax rises expected.
Key Points
- Starmer refuses to rule out income tax threshold freeze
- UK inflation drops to four-month low
- Healey warns Putin 'we are ready' as Russian spy ship on edge of UK waters
- Reports of fresh moves within Labour against Starmer
Starmer calls out Farage for not condemning controversial comments from Reform MPs
14:27 , Athena StavrouMahmood ‘ethnic stereotyping’ in asylum reforms, says Albanian PM
14:10 , Jane Dalton Albanian PM accuses Shabana Mahmood of ‘ethnic stereotyping’’ in asylum reforms
Fears over China as George Osborne considered for top HSBC job
13:50 , Jane DaltonBritain's biggest bank HSBC is "a major sinner" over China, a lord has warned in Parliament as concerns were raised over former Tory chancellor George Osborne being in the running to lead the financial services giant.
As chancellor back in 2015, Mr Osborne declared a "golden era" of UK-China relations based on trade and investment.
Security minister Dan Jarvis told the Commons that MI5 said China was attempting to recruit individuals with access to sensitive information about Parliament and the Government.
Former newspaper editor Charles Moore, who sits as Lord Moore of Etchingham, said: "I am not quite accusing the bank I am going to mention of being a proxy cover company, but I would point out the enormous level of vested interest in China in this way, which leads to weakness.
"Britain's biggest bank, HSBC, is a major sinner in this respect.
"HSBC famously closed down three accounts of the League of Social Democrats in Hong Kong."
He added: "Without wishing to be too personal, it is not wildly encouraging to hear that George Osborne, he of the golden era, is a candidate to be the new chairman of HSBC.
"If he was chairman, I do not imagine that we would get a very rigorous attempt to clamp down on Chinese illegitimate activity.”
Streeting slates Trump's 'piggy' insult to reporter
13:30 , Jane DaltonCabinet minister Wes Streeting has criticised Donald Trump for calling a reporter "piggy".
Footage has emerged of the US president uttering the insult at reporter Catherine Lucey as he took questions on his relationship with paedophile Jeffrey Epstein on Air Force One last week.
Health secretary Mr Streeting said such behaviour towards women belonged in the history books.
Speaking on ITV's This Morning to unveil the Government strategy for men's health, he said: "It's not right.
"One of the things about the work we're actually putting out today on men's health is changing the culture of what it means to be a man, what it means to be strong, and that there are lots of people on the internet at the moment that are trying to sort of radicalise, particularly young men, with stuff that's quite sexist and misogynistic.
"They're trying to send an image to people that says in order to be a man, that's about earning loads of money, having massive cars and basically being extremely misogynistic to women.
"I don't think that's what makes for being a good man. We need better role models. I wouldn't want my sisters to be spoken to like that. I don't think that's appropriate in any context, let alone a professional one."
Mr Streeting continued: "For all the faults in British politics, I would be surprised if any leading politician in our country ever spoke to a woman in our press lobby like that."
Labour MP indicates he would give up his seat for Andy Burnham
13:08 , Athena StavrouThe Independent’s political correspondent Caitlin Doherty reports:
Labour MP Clive Lewis has indicated that he would be willing to give up his seat for Mayor of Greater Manchester Andy Burnham.
Speaking to the BBC's Politics Live the MP for Norwich South suggested that it could be a case of "country before party".
Asked directly if he would give up his seat, Mr Lewis said: "It's a question I've asked myself, and I'd have to obviously consult with my wife as well and family. But you know what? You know if I'm going to sit here and say 'country before party, party before personal ambition,' then yes I have to say yes.”
Pushed again on whether he would give up his seat for Mr Burnham, he said: “I would, yeah.”
What would freezing the income tax thresholds mean?
12:59 , Athena StavrouLabour’s main manifesto pledge when it came to power last year was that it wouldn’t raise national insurance (NI), income tax or VAT.
Instead, it now seems that an extended freeze on tax thresholds by two years to 2030 is a probable option.
Since 2021, the income tax personal allowance has been frozen at £12,570.
Rather than increasing with inflation or average earnings as in previous years, this allowance, and all rates, would remain frozen.
The effect of this is what economists call ‘fiscal drag,’ where more people are pulled into higher tax brackets as average earnings increase, but the thresholds stay the same.
Reform's accusation of 'dog whistle politics' met with laughter
12:45 , Athena StavrouReform UK MP Lee Anderson accused the government of peddling “their own form of dog whistle politics” as he asked the prime minister a question in the Commons.
Laughter erupted in the chamber after the comment, with another MP calling Anderson “the expert” in such things.
More laughter came when he said his party was “cracking on with the day job” in Reform-led councils.
He said: “And the prime minister may shake his head, propped up these gullible back benches, but here's the challenge - will he ensure that all the cancelled elections from this year, and the proposed local elections for next year will go ahead in May 2026.”
He added: “Go on - be a man.”
Sir Keir Starmer replied: "I didn't realise he's quite so good at stand-up comedy."
Government accused of speculating over own Budget
12:35 , Athena StavrouKemi Badenoch accused Labour MPs of “speculating” over their own party’s Budget as she clashed with the Prime Minister over inflation.
The Conservative leader told MPs: “He talks about speculation. The only people who have been speculating are his Government, every single day for the last three months.”
Mrs Badenoch, a former Treasury minister, also said “inflation has nearly doubled since they came into office” and continued: “He wants a round of applause because it’s come down a little bit. I will remind him that food inflation is up 4.9%, that is making life miserable for all of those people out there.
“But let’s go back to thresholds because this is important – when the Chancellor (Rachel Reeves) made that promise to unfreeze the thresholds, it wasn’t an off-the-cuff comment.
“She said it on the floor of this House in her budget speech. That was a deliberate statement of Government policy, so if she breaks such a clear promise, how can the public trust a word that she says next week?”
Tories leap on PM’s refusal to rule out freezing income tax thresholds
12:31 , Athena StavrouThe Independent’s political editor David Maddox reports:
Kemi Badenoch has got the hit she wanted in PMQs with a refusal by Sir Keir Starmer to rule out freezing income tax thresholds.
The Tories had their statement ready to go.
A Conservative Party spokesperson said: “The Prime Minister repeatedly failed to repeat the promise made by the Chancellor in her budget last year to end the freeze on income tax thresholds.“
Rachel Reeves said any freeze in thresholds would be a breach of the Labour manifesto and would ‘hurt working people’.
If she doesn’t end the freeze at the budget next week, it will be yet another broken promise from a government that has lost the trust of the British people.”
They noted that in her budget speech last year, the chancellor said: “Having considered this issue closely I have come to the conclusion that extending the threshold freeze would hurt working people. It would take more money out of their payslips. I am keeping every single promise on tax that I made in our manifesto.”
Watch: Starmer refuses to comment on income tax freezes
12:28 , Athena StavrouAnalysis: Everyone getting their last requests in for the budget
12:25 , Athena StavrouThe Independent’s political editor David Maddox reports:
Lib Dem leader Ed Davey is also using this final opportunity to get a bid in for a budget measure with a sudden push for a gambling tax.
The proposal has actually been championed by former Labour prime minister Gordon Brown as a means of raising revenue.
But Sir Ed has found out that Sky Bet is planning on moving to Malta to avoid corporation tax in the UK.
Linking it to issues regarding people taking their own lives, he has now jumped on the bandwagon for a tax on gambling profits which the chancellor Rachel Reeves is expected to introduce.
If she does he will no doubt claim victory.
Keir Starmer declines to comment on whether ministers will freeze income tax thresholds
12:15 , Athena StavrouThe Independent’s political correspondent Caitlin Doherty reports:
The prime minister told MPs they will have to wait until next week to hear what is in the Budget.
Responding to questions from Conservative leader Kemi Badenoch, he also refused to rule out freezing income tax thresholds.
Sir Keir said: “The Budget is one week today and we will lay out our plans.
“I’ve said what we will do in terms of protecting the NHS and public services.
“What we won’t do is inflict austerity on the country as they did. What we won’t do is inflict a borrowing spree like Liz Truss did.”
Analysis: Kemi Badenoch has followed the first rule of politics - ‘it’s the economy stupid’
12:14 , Athena StavrouThe Tory leader had a number of open goals on Labour’s shambolic plans to roll the ball into the back of the net.
But the key thing was the budget “u-turn” on income tax before the budget was even delivered.
As was famously said before the most important issue in politics “is the economy stupid”.
Ms Badenoch has been at her best when focussing on the economy with the PM’s lines about Liz Truss becoming weaker by the week.
More important is the line from Rachel Reeves that freezing income tax thresholds would be a breach of the manifesto promise not to raise income tax.
This is going to be the line of attack from next week when Ms Reeves does what now seems to be inevitable.
Starmer says Budget will tackle inequality as he is pressed about wealth taxes
12:10 , Athena StavrouThe PM has said next week’s Budget will “tackle inequality”.
It came after he was urged to “end economic injustice” by Corbynite Labour MP Jon Trickett.
In his reply, the Labour leader told him “he is right to rise this issue, we are determined to tackle inequality … the chancellor will deliver a Budget based on Labour values”
Badenoch goes in on income tax
12:09 , Athena StavrouKemi Badenoch began her questions with asking about next week’s Budget.
She asked the prime minister to confirm whether the government would keep their manifesto promises, to which Sir Keir Starmer said plans would be laid out next week.
Starmer facing questions at PMQs
12:01 , Athena StavrouSir Keir Starmer is now facing questions in the Commons in this week’s PMQs.
It is his last PMQs before his government’s crunch Budget next week.
The session began with Starmer congratulating Scotland on their World Cup qualification.
We will bring you the latest updates here.
Watch live: Starmer faces final pre-Budget PMQs after inflation falls
11:55 , Athena StavrouSir Keir Starmer is set to face his final Prime Minister’s Questions (PMQs) opposite Kemi Badenoch ahead of Labour’s highly anticipated Budget next week.
You can watch live here:
Watch live: Starmer faces final pre-Budget PMQs after inflation falls
PMQs to begin shortly
11:50 , Athena StavrouSir Keir Starmer is on his way to the Commons, where he will face this week’s PMQs.
The prime minister will answer questions from the leader of the Conservatives, Kemi Badenoch, and other MPs.
We’ll be bringing you the latest updates here.
Starmer leaves Downing Street ahead of PMQs
11:38 , Athena Stavrou Pictured: The Russian spy ship near UK waters
11:34 , Athena Stavrou Reports of fresh moves within Labour against Starmer
11:19 , Athena StavrouThere has been yet more reports of MPs within the Labour Party preparing to move against Sir Keir Starmer.
Senior MPs in the Tribune Group, on the ‘soft-left’ of the party have reportedly gathered the 80 MPs required to launch a leadership challenge against the prime minister.
However, the group have yet to back one candidate, The Times reported.
One MP told the paper: “It’s all about the polls. We can’t be below 20 per cent at the polls for much longer. We can’t carry on like this past May if the [local] elections are as bad as the polls show.”
Healey's speech summed up:
11:00 , Athena Stavrou- The defence secretary said the Yantar was operating on the edge of UK waters north of Scotland.
- He said the ship had directed lasers at pilots surveillance aircraft monitoring its activities.
- John Healey warned Vladimir Putin the UK is “ready” if the ship moves south this week.
- He said the UK must “step up” in a “new era of hard power” as he unveiled plans for new munitions factories.
- He attacked the Conservative and Green Party’s approach to defence, saying only Labour could be trusted on it.
- He said his message to the EU was that the UK wants a deal on access to the bloc’s flagship defence fund but is not “willing at any price” amid reports of a deadlock.
Watch: Starmer marks International Men's Day with letter to his son
10:52 , Athena StavrouHealey unveils plans for new munitions factories
10:31 , Athena StavrouThe defence secretary has laid out plans to build new munitions factories.
At least 13 potential sites have now been identified for new munitions and energetics factories, with construction expected to begin on the first in the next year.
At least 1,000 new jobs will be created as John Healey said: “For too long our proud industrial heartlands saw jobs go away and not come back. We are changing that. Bringing new hope. This is a fundamental shift from the failed approach of the past.”
UK must 'step up' to 'new era' of defence
10:16 , Athena StavrouThe UK “must step up” in a “new era of hard power”, defence secretary John Healey has said.
In a Westminster speech on Wednesday, he said: “Our world is changing. It is less predictable. It is more dangerous.
“And in the last year alone, we’ve seen the Israel-Iran war bring the Middle East close to the very brink, armed conflict break out between India and Pakistan, Chinese spies targeting our democracy at home, Putin escalate still further his war in Ukraine.
“And in just this last year, we’ve also seen Europe’s skies plagued by drone disruptions, we’ve seen Russian incursions into Nato airspace double and we’ve seen 90,000 cyber attacks on the UK defence system alone.
“This is a new era of threat. It demands a new era for defence, an era of hard power, strong allies and of sure diplomacy.
“And as the threat grows, Britain must step up, and we are.”
Healey tells Putin: "We see you, we know what you are doing"
10:10 , Athena StavrouThe defence secretary has issued a warning to Vladimir Putin as he said a Russian spy ship is on the edge of UK waters.
He said it was the second time the ship had been deployed to UK waters this year.
John Healey said: “My message to Russia and to Putin is this: We see you, we know what you are doing and if the [ship] travels south this week we are ready.”
John Healey speaking in Downing Street
10:07 , Athena StavrouThe defence secretary is giving a press conference in Downing Street,
He said a Russian spy ship is on the edge of UK waters in north of Scotland, having entered the UK’s wider waters over the last few weeks.
He said the boat is capable of mapping undersea cables, and that the UK had deployed royal navy frigate and RAF planes.
Mr Healey said the boat directed lasers at pilots and warned Russia the UK is “ready” if the boat travels south this week.
Starmer under pressure in first PMQs since income tax U-turn
09:54 , Athena StavrouThe Independent’s Whitehall Editor Kate Devlin reports:
Keir Starmer will have to defend a U-turn he did not even announce at PMQs today - after that screeching about turn on increasing income tax in the Budget.
While the obvious attacks will come from Tory leader Kemi Badenoch keep an eye on the MPs sitting behind him.
Labour backbenchers are increasingly despairing - and speculating on how long Sir Keir will last in the job.PMQs is usually a chance for a party leader to rally his troops.
But with another long week to go before we even find out what is in the Budget - Labour MPs think there is very little to cheer about.
Watch: Reeves recognises cost of living still 'big burden' as inflation dips
09:48 , Athena StavrouReeves: Budget leaks are 'no acceptable'
09:36 , Athena StavrouBudget leaks are “not acceptable”, Rachel Reeves has said.
The Chancellor was asked whether the Government’s mixed messages on tax in the November 26 statement might have contributed to market volatility.
She told broadcasters on Wednesday: “Leaks are not acceptable.
“But people only have to wait a week now until I deliver my Budget on Wednesday November 26.
“The priorities of that Budget will be to tackle the cost of living, to get NHS waiting lists down and to reduce national debt. Those are the priorities of the British people, and they’ll be my priorities as I go into the Budget next week.”
Full report: UK inflation drops to four-month low
09:30 , Athena Stavrou UK inflation falls in pre-Budget boost Rachel Reeves
Reeves vows to cut cost of living
09:27 , Athena StavrouHigh prices remain a “big burden” on people, Rachel Reeves has said in response to the release of inflation figures.
“It’s welcome that inflation has fallen from 3.8 to 3.6% in this month’s data. But I recognise that inflation, the cost of living, is still a big burden on families right across the country.
“And that’s why in the Budget next week, I’ll be taking targeted action to bring down inflation to address the cost of living.”
The Chancellor evaded a question on whether she recognised that increases to employer national insurance contributions helped push up food prices.
She replied: “Food prices fell last month and they have risen this month. But I do recognise that there’s more that we need to do to tackle the cost-of-living challenges. And that’s why one of the three priorities in my Budget next week is to tackle the cost of living, as well as to cut NHS waiting lists and cut Government debt.
“There are 300,000 more jobs in the economy than there were at the beginning of this year.
“But of course, I want also to do more to help people back into work, which is why the Budget will be setting out more details of our youth guarantee to ensure that young people are in education, employment or training.”
Starmer to face final PMQs ahead of Budget
09:21 , Athena StavrouThe prime minister is set to face his final round of questions in the Commons ahead of his government’s crunch Budget next week.
Sir Keir Starmer will answer questions from the leader of the opposition, Kemi Badenoch, and other MPs at midday.
We’ll bring you the latest updates here,
UK inflation drops to four-month low in pre-Budget boost for Rachel Reeves
09:19 , Athena StavrouInflation fell to 3.6 per cent in October, in a pre-Budget boost to Rachel Reeves - as well as to consumers and businesses.
The latest update from the Office for National Statistics (ONS) showed Consumer Prices Index (CPI) inflation dropping from September, when it surprisingly held at 3.8 per cent. That has led to most analysts to declare inflation has peaked across the UK.
It is the first time the rate of inflation has been at this level since June of this year - though just three months prior to that, in March it was as low as 2.6 per cent.
