Labour has slumped to six points behind Reform after a week of Labour turmoil over tax rises, a new poll reveals today.
Sir Keir Starmer had reduced the deficit with Nigel Farage’s party to two points with YouGov, but that gap has widened again as speculation grows that Rachel Reeves will use the Budget to increase taxes for millions of Britons.
Ministers are also being coy over whether a specific ‘wealth tax’ – demanded by hard left backbenchers – might be introduced.
Reform is on 28 per cent, up two, and Labour is on 22 per cent (-2) after a week in which Sir Keir also unveiled plans for a one in, one out migrant deal with France.
The agreement, made with much fanfare during a state visit by Emmanuel Macron, will see the UK take one migrant from France with links to Britain for every small boat arrival sent back across the Channel.
However, reports suggest the pilot scheme will as few as 50 per week, raising questions about whether it will provide a deterrent to the thousands making the journey.
Labour’s tax shambles deepened today as a minister suggested only those on ‘average incomes’ will be protected from looming hikes.
Roads minister Lilian Greenwood appeared to commit to protecting those on incomes of up to £39,000 from desperate efforts to fill a black hole in the public finances.
But she gave another strong hint that the ‘wealthy’ will be hammered by Chancellor Rachel Reeves – saying the government thought those with the ‘broadest shoulders’ should pay.
The comments came as Ms Greenwood was grilled over Transport Secretary Heidi Alexander’s claim on Sunday that those on ‘modest incomes’ would be spared pain.
She told Sky News: ‘I think it means people who earn kind of around average income.’
Challenged that was roughly £39,000 a year, she added: ‘I can’t tell you exactly what the Transport Secretary had in her mind when she said that, but our promise when we came in was that we wouldn’t hit working people with increases in employee national insurance, in income tax or VAT, and we’ve absolutely stuck to those promises.’
Pressed that she seemed to be saying there was a wealth tax coming, Ms Greenwood replied: ‘Well these are decisions for the Chancellor, but clearly we’ve always said that we think those who’ve got the broadest shoulders should bear the greatest burden.’
Yesterday Ms Reeves pointedly only committed to holding rates on ‘taxes that working people pay’.
Visiting a school in Wigan, she suggested that just meant no change to income tax, employee national insurance and VAT as she struggles to fill an estimated £30billion black hole.
But pushed on Labour demands for a ‘wealth tax’, Ms Reeves said: ‘We haven’t even set the date for the budget yet, so please forgive me if I don’t speculate about what might happen at an event we haven’t even decided a date on yet.’
