London Daily

Focus on the big picture.
Friday, Sep 25, 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
Vistry Cuts Profit Outlook as Losses Deepen and Private Home Sales Weaken
Reported Assaults on Great Britain’s Railways Rise Sharply
Far-Right Activist Daniel Thomas Arrested After Channel Dinghy Slashing
Ukrainians in Britain Face Greater Homelessness Risk as Host Payments Are Cut
Scottish Drug Deaths Rise as Synthetic Opioids Spread
UK Diesel Prices Approach Record High as Energy Costs Intensify
UK Food and Drink Trade Deficit Widens to Record £21 Billion
Britain’s Largest Planned AI Supercomputer Delayed by Power Grid Constraints
NHS Boards Impose Minimum Waits of Up to Two Years for ADHD and Autism Assessments
Police Arrest Far-Right Activist After Migrant Dinghy Slashed in English Channel
Synthetic Opioids Drive Renewed Rise in Scotland’s Drug Deaths
Reported Assaults on Britain’s Railways Rise 20% in a Year
Vistry Cuts Profit Forecast as Losses Weigh on UK Housebuilder
TikTok Drops Appeal and Accepts £12.7 Million UK Data Protection Fine
Russell Group Urges UK Government to Drop Proposed International Student Levy
Legal & General Plans to Cut 1,000 Jobs by Mid-2027
UK Health Bill Would Remove Independent Governors From NHS Foundation Trusts
BMA Raises Patient Safety Concerns Over Advanced Practitioners Filling Doctor Rotas
UK’s Largest AI Supercomputer Delayed by Power Supply Constraints
NHS Orders Security Cameras in Neonatal Units Following Thirlwall Inquiry
Post-Brexit Trade Barriers Cost UK Economy Up to £6.5 Billion a Year, Analysis Says
UK Parliament Launches Inquiry Into Bank of England Monetary Policy Independence
Global Bond Selloff and Higher Oil Prices Narrow UK Budget Options
UK Prime Minister Andy Burnham Addresses UN and Holds First Meeting With Donald Trump
Royal Navy Commandos Complete Maritime Operations Training With US Navy SEALs
Vistry Profit Warning Adds to Concerns Over UK Housebuilding Conditions
UK Commits £343 Million to Major Expansion of Community Mental Health Services
Five Eyes Partners Back UK-Led Campaign Against Global Fraud Networks
UK Businesses Gain Full Access to £13 Trillion CPTPP Trading Bloc
UK Allocates Nearly £10 Billion for Council, Social and Affordable Housing
Chancellor John Healey Unveils Deregulation Drive to Accelerate UK Investment and Growth
Prime Minister Andy Burnham Sets Out Post-Brexit Foreign Policy Vision at United Nations
UK Reassesses Chagos Arrangements as Burnham Seeks New Path on Diego Garcia
Key Trends to Watch
Government’s “Buy British” Procurement Push Targets More Domestic Jobs and Industrial Capacity
Scotland Launches Four-Year Flood Resilience Programme With New Community Funding
Low-Income Renters Face Record Gap Between Housing Support and Private Rents
UK and US Test Torpedo Launch From British Undersea Drone in Defence Technology Milestone
Britain Pushes Artificial Intelligence Security Onto United Nations Security Council Agenda
Treasury Committee Defends Office for Budget Responsibility Independence Amid Fiscal Pressure
Scotland Records Eleven Per Cent Rise in Drug-Use Deaths as Cocaine and Nitazenes Drive Concern
Welsh Government Sets Four-Year Programme Around Health, Living Costs, Jobs and Housing
Study Finds Most People With High Blood Pressure in England Remain Undiagnosed
Britain Plans First National Workplace Health System to Tackle Economic Inactivity
England to Introduce Vocational GCSEs in Major Secondary Education Reform
UK Elevates Climate and Nature Risks to National Security Priority
Andy Burnham and Donald Trump Put Trade at Centre of First Major Bilateral Meeting
Andy Burnham and Ursula von der Leyen Push Ahead With Closer UK-European Union Economic Ties
UK Government Borrowing Jumps to Eighteen Point Three Billion Pounds Ahead of October Budget
Piddington Residents Back Symbolic Independence Vote Over Asylum Accommodation Plan
×