Angela Rayner has twice refused to define a “working person” amid fears of a looming tax raid on high earners.
Speculation of a potential tax hike had been mounting after another minister refused to say whether Labour’s pledge to not raise taxes for working people applied to those on six-figure salaries.
The Government has said it remains committed to its central manifesto pledge not to increase taxes for working people – by not increasing national insurance, VAT, or the basic, higher or additional rates of income tax.
But despite this, a string of ministers have been unable to define “working people”, with one suggesting that it did not include those on six-figure salaries and Sir Keir Starmer saying it meant those with no savings.
The Deputy Prime Minister’s refusal to define the term came as she stood in at Prime Minister’s Questions on Wednesday for Sir Keir, who is meeting Commonwealth leaders in Samoa.
In response to Sir Oliver Dowden asking her to define the term, Ms Rayner said: “The definition of working people are people that the Tory Party have failed for the last 14 years.”
Sir Oliver countered: “The Deputy Prime Minister stood on a manifesto promising not to raise taxes on working people. It now appears she can’t even define who working people are, so I’ll give her another go.
“There are five million small business owners in this country. Are they working people?”
Ms Rayner replied: “I don’t know how the shadow deputy prime minister can stand there with a straight face when it was the small businesses, the working people of this country, that paid the price for them crashing the economy, sending interest rates soaring.
“I think he needs to learn his own lessons in opposition.”
On Monday, Stephen Kinnock, the care minister, declined to say if people who earned more than £100,000 were classed as “working persons” during an interview on Sky News.
Wes Streeting stokes fears
Fears of a tax raid emerged after Wes Streeting, the Health Secretary, warned high earners not to expect help from the Budget as he suggested it would be focused on “people who are on lower or middle incomes”.
He told Trevor Phillips, the Sky News presenter: “When I’m thinking about this Budget and its consequences, I’m actually not thinking about people on my salary or your salary.
“I’m thinking about people like my mum, who’s a cleaner, or my dad, who’s a car salesman – people who are on lower or middle income, who get towards the end of the month and find they’ve got more month left than they have the money.”
Downing Street has tried to quash fears of a tax raid on high earners.
On Monday, the Prime Minister’s spokesman said the Government “remains committed to the manifesto pledge not to raise VAT, national insurance, or the basic, higher or additional rates of income tax as part of its commitment not to increase taxes on working people”.
Rachel Reeves, the Chancellor, is drawing up plans for £35 billion in tax rises in her Budget, which will be announced in full on Oct 30.
