Speaking with BBC News this morning (Tuesday 15 October) Keir Starmer said he would not “get drawn” into talking about the Budget ahead of Wednesday 30 October, but added the Government “intends to keep the promises made in its manifesto”.
“This is a Budget that is going to be tough, but the focus will be on rebuilding our country and ensuring we get the growth we need in our economy”, the Prime Minister said.
However, when pressed to comment on a possible increase to National Insurance, Starmer stood firm on not raising taxes for working people but did not detail if this also included employers.
Pre-election pledges
Labour’s pre-election manifesto said: “The Conservatives have raised the tax burden to a 70-year high.
“We will ensure taxes on working people are kept as low as possible. Labour will not increase taxes on working people, which is why we will not increase National Insurance, the basic, higher, or additional rates of income tax, or VAT.”
On Monday (14 October), Chancellor Rachel Reeves also stated Labour's election pledge not to increase National Insurance related to the employees rather than employers, as reported by the BBC.
As Labour marked 100 days in power on Saturday 12 October, voices from across the sector urged the Government to be clearer on its plans for future growth and make good on its pre-election promises, including business rates reformation, later this month.
Major ramifications
British Institute of Innkeeping (BII) CEO Steve Alton told The Morning Advertiser (MA): “Engagement with Ministers and officials has been positive, with recognition of the foundational role of pubs in their communities and local economies. But It has never been more critical for words to be matched with actions at the upcoming Budget”.
It comes as publicans last week told The Morning Advertiser (MA) they were already bracing themselves for further increases to the National Living Wage (NLW).
In addition, speaking at the MA Leaders Club event in Oxford earlier this month industry leaders said NLW rises had become one of the biggest challenges for the sector.
Moreover, the Employment Rights Bill, introduced in Parliament last week, is set to have “major ramifications” for pubs when it comes into force, including the abolishment of zero hours contracts.
