Keir Starmer said that economic growth is the priority before looking to cut income tax and raise thresholds.
In his New Years speech in Bristol today (January 4), the leader of the Labour party was asked if he would unfreeze income tax thresholds.
Under the current Conservative government income tax bands have been frozen until 2028 meaning significant numbers of people will be pulled into a higher tax bracket.
While Starmer highlighted that helping people to have more money in their pockets was a ‘fundamental principle’ he believes in, economic growth needs to come first.
He said: “The first lever we want to pull is growth in our economy because that is what has been missing for 14 years. Without growth we won’t have the money to run our public services.
“Any tax cuts have to be fair and affordable but the place to go is growth.”
No sign of scrapping IHT
Ahead of the Autumn Statement last year there were rumours that chancellor Jeremy Hunt would look to cut inheritance tax entirely.
However, this was missed out with many predicting this to be a topic for the Spring Budget in 2024.
When asked if he would be scrapping or reducing IHT, Starmer replied that he was "fundamentally opposed" to this idea.
He said: “I would not be doing what the Conservatives are floating.
“Further tax breaks for those who are the best off with nothing on offer for working class people is not a good idea.”
alina.khan@ft.com
