14-07-2025
Future tax rise fears reignite after minister's statement on 'modest' incomes
Transport Secretary Heidi Alexander has reignited fears that further tax rises are on the horizon following a recent statement regarding "modest incomes".
Specifically that those with such incomes would be exempt from tax raids, but that leaves the door open to taxes for anyone whose income is not considered "modest".
Alexander told Sky News: 'We made a commitment in our manifesto not to be putting up taxes on people on modest incomes, working people. We have stuck to that.
Read more: Midlands areas named on new list of 'poorest' places in England
'We are determined, when it comes to taxation, that fairness is going to be our guiding principle.'
She added that wealth taxes were not 'directly' discussed, but Alexander did not rule them out for future tax rises.
These comments have also sparked a debate on what Labour qualifies as a "working person".
Sir Keir Starmer said in June that they were 'people who earn their living, rely on our [public] services and don't really have the ability to write a cheque when they get into trouble'.
The following day Chancellor Rachel Reeves said: 'Working people are people who go out to work and work for their incomes. Sort of by definition, really, working people are those people who go out and work and earn their money through hard work.'
It comes as the Secretary to the Treasury, Darren Jones, said that the government will not raise income tax, VAT or National Insurance on workers.
A Treasury spokesman said: 'The best way to strengthen public finances is by growing the economy – which is our focus.
"Changes to tax and spend policy are not the only ways of doing this, as seen with our planning reforms, which are expected to grow the economy by £6.8 billion and cut borrowing by £3.4 billion.
'We are committed to keeping taxes for working people as low as possible, which is why at last autumn's Budget, we protected working people's payslips and kept our promise not to raise the basic, higher or additional rates of income tax, employee National Insurance, or VAT.'
Join our dedicated BirminghamLive WhatsApp community for the latest updates sent straight to your phone as they happen.
You can also sign up to our Money Saving Newsletter which is sent out daily via email with all the updates you need to know on the cost of living, including DWP and HMRC changes, benefits, payments, banks, bills and shopping discounts. Get the top stories in your inbox to browse through at a time that suits you.
