Britain’s ruling Labour Party has ruled out any income tax hike, reaffirming its pre-election promises despite growing concerns over a widening fiscal gap. The party’s leadership says it remains committed to keeping its word to voters and maintaining stability in tax policy.
Speaking to Sky News on Friday, Minister Nick Thomas-Symonds confirmed that Labour will stick to its manifesto commitments. “We stand by our pledges on VAT, on national insurance, and on income tax,” he said. His comments came after reports suggested the government was considering a possible income tax hike in the upcoming budget.
The Guardian earlier reported that Finance Minister Rachel Reeves was exploring ways to address the country’s multibillion-pound deficit, including potential changes to tax thresholds or adjustments to the basic rate of income tax. However, the government has now clarified that no such plan is being pursued.
Before the last general election, both Prime Minister Keir Starmer and Reeves promised voters that Labour would not increase income tax, VAT, or social security contributions for working people. That assurance was central to the party’s campaign message of protecting household finances while maintaining fiscal responsibility.
Despite those commitments, economic challenges have intensified. The government is under pressure to find new revenue sources without undermining growth. Reeves’ first budget last year included higher National Insurance Contributions for employers but avoided any tax rise on individuals.
Earlier this month, the National Institute of Economic and Social Research advised the government to consider an income tax hike as one way to raise the £30 billion needed to stabilize public finances. However, Labour has so far rejected that advice, emphasizing its promise not to burden ordinary workers.
As the next budget approaches, speculation continues about how the government will address its fiscal shortfall. For now, Labour insists its election promises remain intact — ruling out any immediate income tax hike.
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