London Daily

Focus on the big picture.
Friday, Jun 26, 2026

Keir Starmer: Labour would reverse cut to top income tax rate

Keir Starmer: Labour would reverse cut to top income tax rate

Labour would reverse the government's cut to the top rate of income tax, leader Sir Keir Starmer has said.

He told the BBC the move was "the wrong choice" during a cost-of-living crisis.

But Sir Keir said he supported the decision to cut the basic rate of tax from 20% to 19% as this would "reduce the tax burden on working people".

On Friday Chancellor Kwasi Kwarteng unveiled plans to scrap the higher 45% rate as he set out the biggest package of tax cuts in 50 years.

Sir Keir told the BBC's Sunday With Laura Kuenssberg programme: "I do not think that the choice to have tax cuts for those that are earning hundreds of thousands of pounds is the right choice when our economy is struggling the way it is, working people are struggling in the way they are... that is the wrong choice."

However, on the cut to the basic rate of income tax, he said: "I've long made the argument that we should reduce the tax burden on working people.

"That's why we opposed the national insurance increase earlier this year, which of course the government is now reversing."

But the Labour mayor for Greater Manchester, Andy Burnham, said his party should commit to scrapping income tax cuts to both the basic and top rate.

He told Sky News' Sophy Ridge now "wasn't a time for tax cuts" as it was not the most "targeted" way of helping those most in need.

The chancellor denied his tax cuts favoured those at the top, saying he was "focused on tax cuts across the board".

Mr Kwarteng also suggest there was "more to come".

"We've only been here 19 days. I want to see, over the next year, people retain more of their income because I believe that it's the British people that are going to drive this economy," he told the BBC.

Sir Keir also said there was now "a belief" that his party would win the next election, with signs some former Labour voters who backed the Conservatives in 2019 were returning.

"Something has happened in the Labour Party this year, which is the hope of a Labour government has turned into a belief in a Labour government," he said.

Asked whether workers should expect their pay to rise in line with inflation, Sir Keir said it was "reasonable" for people to expect their wages to take account of the rising cost of living.

Workers ranging from rail staff to barristers have taken industrial action over pay, with unions calling for pay rises above inflation, which is at a 40-year high of 9.9%.

Pushed whether he would support people going on strike if pay rises did not match inflation, Sir Keir said strikes were "a last resort" and he could understand how people were driven to industrial action when they were struggling to pay their bills.

Sir Keir's shadow transport minister was sacked after joining striking rail workers on a picket line over the summer.

The official line was that Sam Tarry was sacked for "making up policy on the hoof" in an unauthorised media appearance but shadow ministers had been warned not to appear at picket lines.

Asked why he was not more visible on picket lines, Sir Keir said the "most important" thing he could do as party leader was "usher in a Labour government" and his job was different to that of a union leader.

At the start of its party conference in Liverpool, Labour has unveiled plans on green energy and boosting police numbers.

The party said it wanted to make the UK the first major economy in the world to generate all of its electricity without using fossil fuels.

Sir Keir said achieving zero carbon energy by 2030 would be a key priority if his party wins the next election, adding that it was a "difficult" goal but "absolutely doable".

However, he said fossil fuels may be a "fall back" if the target cannot be met by 2030.

The government has already committed to zero carbon electricity by 2035 but Labour believes it can win votes by promoting green energy as a way to generate economic growth, in contrast to Tory tax cuts for the well-off.

In the short-term Labour has backed freezing energy bills for six months to help people cope with the rising cost of living.

The government has committed to a 2-year freeze for household energy bills.

But Sir Keir said his party's plan would be to look at the situation again in April and find a "longer-term answer" to the issue.


Sir Keir Starmer tells Laura Kuenssberg that his government would reverse the cut to the top income tax rate

Chancellor Kwasi Kwarteng: "What I'm focused on, is tax cuts across the board"

Sir Keir Starmer: "When people go on strike, it is a last resort"


Newsletter

Related Articles

0:00
0:00
Close
UK Government Launches Review of Voluntary National Insurance Contributions System
UK Planning Inspectorate Reports Key Infrastructure and Planning Milestones in Annual Review
UK Government Reviews Travel Expense Reimbursement Rates for Employers and Employees
Civil Nuclear Constabulary Launches National Digital Memorial for Officers Killed in Service
UK and US Expand Collaboration on Nuclear Fusion Research and Workforce Exchange
Environment Agency Secures £275,000 Enforcement Deal with Anglian Water Over Permit Breaches
Independent Inspector Flags Ongoing Failures in UK Home Office Border Case Management
UK Government Considers Zero VAT Rate on Land for Social Housing Development
Bank of England Reports Sharp Drop in Emissions and Warns on Climate-Driven Financial Risk
Consumer Confidence in the UK Falls at Fastest Quarterly Rate Since 2022
UK Borrowing Costs Rise Sharply on Gilt Markets Amid Fiscal and Political Concerns
UK Government Plans Legislation to Bring British Steel into Public Ownership
UK Government Secures £210 Million Nuclear Fuel Deal to Support Ukraine Energy Security
London Ambulance Service Reports Record Emergency Call Volume Amid Severe Heatwave
United Kingdom Faces Record June Heatwave as Temperatures Hit 36.7°C in Somerset
UK Financial Services Reform Debate Intensifies Over Ministerial Regulatory Powers
UK Energy Price Cap Rise Expected to Keep Inflation Above Target Through 2026
UK Biohacking and AI Wellness Trends Drive Surge in Personal Health Monitoring
UK Social Care Sector Sees Workforce Shift as Overseas Recruitment Masks Domestic Labour Decline
Nuffield Trust Warns UK Health Budgets Remain Vulnerable Despite Record Spending Levels
UK Coal Pension Surplus Debate Returns to Parliament as Reform UK MP Seeks Clarity on Distribution
UK MPs Consider E-Petition Calling for NHS Newborn Screening for Spinal Muscular Atrophy
UK Parliament Debates E-Petition Calling for Inquiry Into Pro-Israel Influence in Politics
UK Economy Grew 0.6 Percent in Q1 2026 but Business Sentiment Weakens Over Geopolitical Risks
UK Financial Services Bill Enters Lords Committee Stage With Expanded Ministerial Powers
UK Armed Forces Bill Advances With Plans for Defence Housing Service and Drone Defence Measures
UK Treasury Proposes Higher Electricity Generator Levy and Updated Mileage Allowance Rules
UK Parliament Debates Health Bill Amid Persistent GP Access and Patient Satisfaction Concerns
UK Financial Sanctions Regulator Signals Faster, Intelligence-Led Enforcement Strategy
British Chambers of Commerce Warns Business Confidence Crisis Is Dampening UK Investment
UK Parliament Debates Carbon Budget Order as Pressure Mounts on Net Zero Delivery
UK Energy Price Volatility Reinforces Pressure for Faster Electrification of Economy
UK Defence and Aerospace Strategy Gains Momentum as Keir Starmer Pushes Industrial Cooperation in Berlin
Department for Environment, Food and Rural Affairs Unveils £53 Million Investment in Farming Innovation
Foreign Secretary Announces Medical Evacuations and University Support for Palestinians in Gaza
Government-Commissioned Report Highlights Economic Exposure to Climate-Driven Fossil Fuel Price Shocks
Climate Change Committee Warns UK Is Off Track on Emissions Cuts and Calls for Faster Decarbonisation
Prime Minister Keir Starmer Calls for Deeper UK-EU Defence and Industrial Cooperation in Berlin Address
Met Office Issues Red Extreme Heat Warning as Temperatures Set to Surpass 37°C in England and Wales
Bank of England Holds Interest Rates at 3.75% as Inflation Outlook Remains Uncertain
UK Announces New Military Infrastructure at Catterick to Support Engineer Regiment Relocation
University of Reading Ranked Among Top 100 Globally for Sustainability Impact
UK Launches Counter-Fraud Taskforce to Investigate Covid Loan Scams
UK Government Introduces Customs and Tax Reforms to Support High Street Retailers
Jonathan Haskel Nominated as Chair of the UK Office for Budget Responsibility
UK Government Expands Powers to Recover Benefit Debt and Tackle Welfare Fraud
Labour Party Leadership Contest Intensifies as Andy Burnham and Ed Miliband Clash Over Economic Direction
Rail Operators Urge Essential Travel Only as Extreme Heat Threatens UK Network Stability
United Kingdom Issues Red Extreme Heat Warning as Temperatures Forecast to Reach 38°C
Keir Starmer Announces Resignation as UK Prime Minister Amid Deepening Political Instability
×