Prime Minister Keir Starmer says Britons who receive extra income from stock holdings do not count as ‘working people’, suggesting he is keen to raise taxes on investors.
Asked by Sky News whether someone who works but also receives income from shares or property is a working person, Starmer said, “They would not fall into my definition.” His government has repeatedly promised not to raise taxes on what it considers working people, including refusing to raise income tax, national insurance on employees and value added tax.
“People will know if they’re in that group, people who work hard and are worried about whether or not they’ll be able to make ends meet and know that if something were to happen to them and their family So they can’t write a check to get out of the problem,” Starmer said, when asked for his definition.
His spokesman Dave Pares later clarified that despite Starmer’s previous comments, a person who holds a small amount of savings in stocks and shares is still counted as a working person. He said Starmer was referring to a person who derives his income primarily from property.
Starmer’s new government has sought to demonstrate its commitment to wealth creation ahead of this budget, including hosting a summit earlier this month for businesses and investors to raise billions in private money for the UK Is. Earlier this week, he said there was “no reason” for entrepreneurs to leave Britain despite the prospect of tax rises.
Chancellor of the Exchequer Rachel Reeves has admitted she is considering other taxes to ensure “the amount increases”, leading to widespread expectations that employers will pay more National Insurance and that capital gains and inheritance taxes will increase. The increase in capital gains tax is likely to hit property as well as people selling shares.
Reeves is under pressure to increase public spending despite the limited fiscal space he inherited from his Conservative predecessors, which prevents him from making major gifts. She confirmed on Thursday that she would change the financial rules underpinning UK spending plans to boost government investment, a move that would allow Britain to borrow more than £70 billion ($91 billion) over the next five years. Can give permission.
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