Reeves promises ‘more pounds in people’s pockets’ despite Budget tax raids

Thank you for joining me for today’s politics live blog. 

I will be back tomorrow morning to guide you through the Budget. 

The Treasury has issued the traditional eve-of-Budget photo of the Chancellor finalising her speech in No 11 Downing Street.

The picture on the wall behind Rachel Reeves is of Ellen Wilkinson who was a minister in Clement Attlee’s government in the late 1940s.  

Jeremy Hunt has hit back after Downing Street suggested he was trying to “trash” the reputation of the Office for Budget Responsibility (see the post below at 12.41). 

The former chancellor has complained because the OBR is going to publish a review tomorrow on the financial “black hole” Labour said it had inherited from the Tories. 

Mr Hunt said publishing the review on the day of the Budget, and without a right of reply, would not be fair or impartial. 

No 10 denied using the OBR as a political tool and said that the Prime Minister “is clear that this Government is going to back the independent OBR, not trash it”.

Mr Hunt responded on Twitter: “Don’t ‘trash’ the referee! That is exactly what is happening with a carefully choreographed OBR statement about the last government - with no right of reply - on the very day this government is trying to justify tax rises…”

The UNRWA bills passed by Israel's Knesset are gravely concerning.

This risks jeopardising the international humanitarian response in Gaza.

We need to see an immediate ceasefire and the release of hostages. Israel must ensure sufficient aid reaches civilians in Gaza.

Turnout in the Tory leadership vote is lower than expected, Kemi Badenoch said as she urged Conservative Party members not to wait until the last minute to cast their ballot. 

Mrs Badenoch said low turnout had prompted her to increase her media appearances this week in an attempt to drum up more engagement. 

She told the BBC’s Newscast podcast: “I am doing more media this week, specifically because people aren’t turning out to vote as much as we would have expected. 

“It was reported in the papers, I don’t know who actually told them, but this is something that I knew. 

“You know, you go into events, ‘have you voted yet?’, ‘have you voted yet?’, people saying, well, no they haven’t, we’re going to wait until the last minute, it’s like: Vote. Don’t wait until the last minute.” 

Mrs Badenoch said she believed the contest against Robert Jenrick is “neck and neck” and “many people are undecided”. The winner will be announced on Saturday.  

We need more women involved at all levels of our party.

Not by imposing profoundly unconservative all-women shortlists.

But by working hard to spot talent and giving working women the support they need to run. pic.twitter.com/IE8WhPZp6h

Boarding schools are facing a funding crisis as international families desert Britain as a result of Labour’s VAT raid. 

Visa applications to study at British private schools fell by almost 25pc in the first half of this year compared to the same period in 2023, government figures show. 

Recruitment agents, who work to promote British schools to overseas families, have warned demand has dramatically fallen.

You can read the full story here. 

Britain has urged Israel to “step back from the brink” and drop attempts to effectively ban the main aid agency still operating in Gaza.

Foreign Office minister Anneliese Dodds expressed concerns as she responded to an urgent question on the Israeli Knesset’s approval of two new laws that declare the United Nations Relief and Works Agency (UNRWA) a terrorist organisation.

The laws, which will not come into effect immediately, would ban UNRWA from operating on Israeli soil, effectively barring it from working in Gaza or the West Bank where access is controlled by Israel.

Ms Dodds said “jeopardising” UNRWA’s mandate and its ability to carry out lifesaving work is “unacceptable”.

She told the House of Commons: “Removing UNRWA from the equation would make an already unacceptable humanitarian situation in the Occupied Palestinian Territories (OPTs) far worse. It also undermines, of course, the work of the United Nations more widely.

“We’re working closely with our international partners to urge the Israeli government to step back from the brink and ensure that the legislation passed yesterday in the Knesset does not stop UNRWA being able to carry out its vital role in the OPTs.”

Sir Keir Starmer has suffered the biggest fall in approval rating after winning an election of any prime minister in the modern era, a poll has shown.

Sir Keir’s approval rating was at a high of plus 11 in July after Labour won the election with a landslide 174-seat majority – the biggest in 25 years – according to the poll, by More in Common.

But by this month, ahead of Rachel Reeves’ Budget on Wednesday, his personal rating has fallen to -38 – a net drop of 49.

It takes him below Rishi Sunak’s rating, which this month has improved from -37 when he lost the election to -31, according to the poll of 1,012 adults.

You can read the full story here. 

The Cabinet signed off the Budget at its meeting this morning as Sir Keir Starmer and Rachel Reeves warned of the need to take difficult decisions to repair the public finances and services.

Labour issued the following readout of the meeting of the political Cabinet: 

“This Budget is about investment with Labour versus decline under the Conservatives. The Prime Minister opened the political Cabinet meeting by saying that “politics is about choices” and that the Budget tomorrow will show that “we are choosing to fix the NHS, rebuild Britain and protect the payslips of working people”, to deliver on our mandate for change.

“The Prime Minister highlighted the black hole in the public finances that the Conservatives covered up, which means that tough choices are necessary to stabilise the economy and rebuild our country. He added that the question for the Budget is not whether we must act, it is how we act and what choices we make in the national interest.

“The Chancellor then updated the Cabinet on the Budget. The Chancellor said that the inheritance the Tories left meant there would have to be difficult decisions on spending, welfare and tax.

“She said the Labour Party promised there would be no return to austerity and the Budget tomorrow would deliver on that promise. She said the choices the Government is taking will restore economic stability. She said the Budget would fix the foundations of the economy and deliver on the promise of change.”

Rachel Reeves insisted there will be “more pounds in people’s pockets” under the Labour Government despite the nation bracing for tax raids at tomorrow’s Budget. 

The Chancellor told the House of Commons that her first Budget will “turn the page on low growth”. 

She said: “Tomorrow I will present my first Budget. This will be a Budget that fixes the foundations of our economy and delivers on the promise of change. 

“It will turn the page on low growth and will be the start of a new chapter towards making Britain better off. 

“More pounds in people’s pockets, an NHS that is there when you need it and businesses creating wealth and opportunity for all.”

Tomorrow’s Budget is expected to include raids on employers’ National Insurance contributions, inheritances and capital gains.

Sir Lindsay Hoyle said pre-Budget announcements are fine  - as long as they are made in the House of Commons. 

The Commons Speaker was responding to Downing Street insisting that revealing details ahead of time was “entirely routine” (see the post below at 12.50).

Sir Lindsay told MPs: “Before we come to the urgent question I should say to the House that I have noted media reports of the assertion from Downing Street that the pre-announcement of Budget measures is entirely routine.

“For avoidance of doubt, I’m always happy for ministers to come to the House in the run up to the House in the run up to the Budget.

“This discourtesy arises where those announcements are made elsewhere.”

It is “entirely routine” for governments to communicate aspects of a Budget before it is unveiled in the House of Commons, the Prime Minister’s official spokesman has insisted.

Sir Lindsay Hoyle, the Commons Speaker, complained yesterday about Rachel Reeves revealing parts of the Budget to the media rather than to MPs.

The PM’s official spokesman said: “It’s entirely routine for the Chancellor and indeed the Government to explain the context of fiscal events in advance to ensure that the public understand the context, to ensure that the Budget lands in the right context.

“We are, of course, committed to ensuring that we work with Parliament to ensure measures are also announced to Parliament in the usual way.”

The Government will back the Office for Budget Responsibility, not trash it, Downing Street said after Jeremy Hunt complained about the watchdog publishing a review of the last administration’s spending plans on the same day as the Budget.

The former chancellor complained that the OBR publishing a review into the “black hole” Labour says it inherited on the same day as the Budget would not be impartial (see the post below at 07.45).

Asked if the Government was using the OBR as a political tool, Sir Keir Starmer’s spokesman said: “No, the Prime Minister is clear that this Government is going to back the independent OBR, not trash it.

“The answer is not to blame the referee, face up to the challenges we faced and be honest about the trade-offs and choices the Government face, not pretend they don’t exist.

“That’s why the Government is strengthening the OBR through the Budget Responsibility Act to ensure that it’s never sidelined again, like we saw during the mini budget.

“The Government has been up front about the black hole of the nation’s finances and it fully backs the OBR and the independent scrutiny it provides.”

Rachel Reeves has been urged by MPs to “think again” when it comes to means-testing winter fuel payments for pensioners and to increase the threshold for the allowance.

Speaking in the House of Commons, Tory former minister Dame Harriett Baldwin said: “The living standards of a 90-year-old pensioner on a £13,500 income are falling sharply this winter, as a result of her decision to take away the winter fuel allowance. Tomorrow she has the chance to increase that threshold, will she take it?”

Ms Reeves replied: “[Dame Harriet] will know that because of our commitment to the triple lock that the basic state pension and the new state pension will continue to rise. In fact, this winter the new state pension is worth £900 more than it was a year ago and the new state pension is likely to rise by a further £450 next April.

“Indeed, during the course of this Parliament, because of the triple lock the new state pension is likely to be worth £1,700 more, much more than the value of the winter fuel payments.”

Liberal Democrat Treasury spokeswoman Daisy Cooper said “the Government does need to think again”, adding: “Either reverse this cut and make it taxable, or look at, for example, raising pension credit limit.”

Responding, Treasury minister Emma Reynolds said the Government had a “steadfast commitment to the triple lock”.

Labour got into power and immediately decided to hit:

- Workers
- Pensioners
- Bus users

That's change…for the worse.

Downing Street categorically rejected the suggestion that the Falkland Islands could be handed over to Argentina following comments made by Javier Milei (see the post below at 12.00). 

The Prime Minister’s official spokesman: “The sovereignty of the Falkland Islands is not up for negotiation.” 

Sir Keir Starmer’s deal to hand over the Chagos Islands proves the Falklands could belong to Argentina again, the president of the country has said.

The Prime Minister gave up the Chagos Islands earlier this month as he handed the Indian Ocean territory to Mauritius, writes Dominic Penna.

The move has sparked fears over the futures of both the Falklands and Gibraltar, despite the governor of the Falklands insisting that the territory would remain safely under British control.

Javier Milei, the Argentine president, said the Falklands “were never going to be Argentine again” under the previous government but he now hoped that they will be under Labour.

He told the Financial Times: “If you are in conflict, you are not going to make any progress. With what the previous government was doing, they were never going to be Argentine again.”

Noting years of diplomatic negotiations between Britain and Mauritius had preceded the handover, Mr Milei added: “By that mechanism, we believe that in the long term [the islands] will become Argentine again.”

The Tories have presented a petition with more than 250,000 signatures to the Government calling for the cut to winter fuel payments for 10 million pensioners to be reversed. 

The petition was handed into Downing Street this morning. 

Mel Stride, the shadow work and pensions secretary, said: “It is clear from the overwhelming support for this petition that there is deep anger about this cruel cut.  Labour must stop this appalling policy at once.

“The basic unfairness of giving out billions to their union paymasters whilst removing £300 from many pensioners on £11,500, forcing them to choose between heating and eating, is completely unacceptable.

“The budget is the big opportunity now to reverse this callous policy. I hope for the sake of vulnerable pensioners this winter that Rachel Reeves does the right thing.”

Parliament’s standards watchdog has reprimanded former Conservative MP Aaron Bell for “brazen and drunken” sexual misconduct.

A panel concluded the former MP for Newcastle-under-Lyme, who stood down at the election in July, “abused his position of power” by touching a woman “on her left thigh, waist and bottom inappropriately and without her consent” while in one of Parliament’s bars in December 2023.

Had Mr Bell still been an MP, the panel said it would have considered suspending him from Parliament “for a significant period”.

Mr Bell said in a statement: “I am disappointed at the outcome of the investigation but have chosen not to appeal the findings of the Commissioner.

“I apologise for any upset caused to the complainant and wish to make it clear that I did not intend to cause any distress.” 

An overwhelming majority of voters believe improvements to public services should be funded by increasing income tax for the wealthiest in society, a new poll has found. 

A YouGov survey conducted between Oct 21-22 provided people with a list of options for how to fund improvements. 

Increasing income tax for the super-rich was supported by 82 per cent of respondents, making it the most popular option. 

Increasing income tax for the rich was in second place with 75 per cent and increasing corporation tax was in third place with 59 per cent.

Voters believe poor management rather than a lack of funding is the main reason why the UK’s public services are struggling, according to a new YouGov survey. 

Poor leadership topped the table when people were asked to pick the biggest causes of problems faced by the nation’s public services. 

It was selected by 49 per cent of respondents in a survey conducted between Oct 21-22.

Not enough funding was the second most popular choice, picked by 34 per cent of people, and bad government policy was in third place with 33 per cent. 

Britons are more likely to say that poor leadership, rather than insufficient funding, is one of the biggest problems faced by public services

Poor leadership/management: 49%
Not enough funding: 34%
Bad govt policy: 33%
Privatisation/outsourcing: 27%
Bureaucracy/red tape: 26%… pic.twitter.com/o3C7hdStVZ

Six in 10 voters believe the level of tax in the UK is already high, according to a new YouGov poll published on the eve of what is expected to be a tax increasing Budget. 

A survey conducted between Oct 21-22 found 41 per cent of people believe tax is “fairly high” while 18 per cent said it is “very high” - 59 per cent in total. 

Just five per cent said they believe tax is low - 4 per cent “fairly low” and 1 per cent “very low”. 

About a third - 29 per cent - said they would not characterise current levels of taxation as either high or low. 

Tomorrow’s Budget is expected to include raids on employers’ National Insurance contributions, inheritances and capital gains.

Wes Streeting said new laws that ban the United Nations Relief and Works Agency (UNRWA) from operating on Israeli soil are a “catastrophe for humanitarian relief”.

Israeli politicians voted overwhelmingly yesterday for a Bill that effectively prevents the organisation from operating in Israeli territory.

The UN agency was set up in 1949 to support Palestinian refugees, but Israel claims that up to 10 per cent of its staff have links to terror groups. 

Asked if the Government was pushing Israel to reverse the decision, Mr Streeting told BBC Radio 4’s Today programme: “Of course we are, and so are many of our international allies. Look, this is a catastrophe for humanitarian relief.”

Wes Streeting said he had not intended to “wade into the debate” about legalising assisted dying but was asked a question about his stance and “gave an honest answer”.

The Health Secretary said last week that he will vote against a Bill to legalise assisted dying over concerns regarding the state of palliative care in the UK. 

He told ITV’s Good Morning Britain today: “The Government is neutral. Ministers are able to vote however we want. We’re subjected to a free vote.

“I hadn’t actually intended to wade into the debate last week. I was asked the question at a private meeting of the Parliamentary Labour Party by a colleague, and I gave an honest answer.”

Explaining his stance, he said: “I’ve come down this time on voting against the Bill on the basis that I worry about palliative care, end-of-life care not being good enough to give people a real choice.

“I worry about the risk of people being coerced into taking this route towards the end of their life.

“And I also worry, even where you’ve got really loving families who are very supportive, I really worry about those people who think they’ve almost got a duty to die to relieve the burden on their loved ones, and I’ve had to weigh those issues up against the very powerful arguments on the other side of the argument as well.”

Disclosing parts of the Budget ahead of time is necessary to avoid shocking the markets, Wes Streeting suggested. 

Sir Lindsay Hoyle, the Commons Speaker, complained yesterday that it was “unacceptable to go around the world telling everybody” about “major” new policy announcements rather than giving the information to MPs first.

“Look, I can firstly confirm for the benefit of Mr Speaker, in case he’s listening, certainly, what I’m announcing today is the delivery of Labour’s manifesto, so we are honouring our commitments,” Mr Streeting told Times Radio.

“So, you know, I hope I don’t find myself on the wrong side of the Speaker and, look, there’s a serious point here, which is it was important for the Chancellor when she was in Washington last week to explain the context in which she’s making some big reforms to our economy and the way that she handles investment in our national infrastructure.

“That was important to make sure that this Budget lands in the right context with the financial markets.

“We saw what happened with Liz Truss and Kwasi Kwarteng when they ignored the Office for Budget Responsibility and sidelined them, when they took the markets by surprise, they ended up tanking the economy, and we are still paying the price for it.

“But we do take the Speaker seriously. We take Parliament seriously. We are members of Parliament first and foremost, and we’ve all heard very, very clearly and plainly what Mr Speaker said yesterday, and we will certainly be taking that into account in terms of our conduct in the coming days, weeks and months.” 

The Liberal Democrats have urged Labour to start cross-party talks on social care reform “before it is too late”. 

Helen Morgan, the Lib Dems’ health and social care spokesperson, said the Government must address the issue at the Budget. 

Labour has promised to bring forward a plan for reform but it has not committed to a firm timeline for doing so. 

Ms Morgan said: “The Government must urgently start cross-party talks on social care before it is too late.

“The previous Conservative Government turned a blind eye to the crisis for far too long, leaving the care sector in the gutter.

“This must be a budget to save the NHS from the brink of collapse, and that cannot happen without a proper plan to fix social care.”

Fixing the NHS. Rebuilding Britain. Protecting working people's payslips.

We are choosing a different path to deliver on our mandate of change. pic.twitter.com/klTahYzI2n

Liz Truss told Jeremy Hunt the Office for Budget Responsibility could not be considered a “friend” as she repeated her call for the financial watchdog to be abolished. 

Mr Hunt has expressed concern (see the post below at 07.45) at the OBR publishing a report tomorrow detailing the state of the public finances under the Tories. 

He has criticised the timing, arguing the report will be politicised by Labour on the day of what is expected to be a tax increasing Budget. 

Mr Hunt has referred to the OBR as “friends” but Ms Truss tweeted: “They are not your friends. 

“When politicians outsource power to unelected bodies like the [OBR] it destroys accountability and democracy.

“We will only be able to implement conservative economic policies when they are abolished.”

It is the question which has dominated every ministerial interview for the last month: What is a working person? 

Ministers have struggled to give a firm answer but combining all of their answers could help to illuminate the situation. 

You can find out if you might be covered by Labour’s “working people” pledge by taking The Telegraph’s quiz below: 

Wes Streeting has criticised private schools for “pleading poverty” over Labour’s tax raid on fees. 

VAT will be imposed on private school fees from January next year, prompting fears of a pupil exodus into the state sector. 

Mr Streeting was unapologetic about the move as he told LBC that private schools will have to cut their cloth accordingly - just like state schools. 

The Health Secretary said: “I would just say to independent schools - you have hiked your fees up with inflation-busting increases, year after year after year since 2010, and now you’re pleading poverty?

“If you’re worried about whether children can continue to access your schools, you’ll have to cut your cloth in the way that state schools have had to do for over a decade.”

Mel Stride said he will not be publicly endorsing either of the two remaining Tory leadership candidates. 

But he insisted both Robert Jenrick and Kemi Badenoch were strong candidates. 

The former Tory leadership contender told Sky News: “I am not going public on the leadership.”

Increasing National Insurance contributions for employers will be a “drag on growth”, Mel Stride said this morning. 

The shadow work and pensions secretary told Sky News: “This is a government that does not understand business or growth and the reason it doesn’t understand it is it is demonstrating already that where it is going for its tax increase are going to be a drag on growth. 

“National Insurance for employers is going to mean huge costs for businesses of all sizes up and down the country.” 

Labour’s Budget will make it “much more difficult” for businesses to grow and could also hit wages, Mel Stride has warned. 

The shadow work and pensions secretary said a widely expected increase to employer National Insurance contributions would mean firms have less money for expansion and recruitment. 

He told Sky News: “My background is business. I set up my own company many years ago… I know what it is to struggle through and make a success of an enterprise and things that don’t help are additional costs and it is likely in this Budget of course that we are going to see a substantial hike in National Insurance for employers and that is going to load additional cost on businesses. 

“Along with the employment regulation reforms that this Government is bringing through, I think it is going to be much more difficult for companies now to expand and recruit people and pay better wages going forward.” 

Wes Streeting defended Labour’s decision to increase the cap on bus fares in England from £2 to £3. 

The Health Secretary said making the cap less generous was one of the “choices we are having to make that we would rather we had not been forced to make”.

He said Labour had to take such steps because of the state of the public finances. 

Told that the decision would cost some people an extra £10 a week, he told Sky News: “Had we not taken the action that we are taking on the bus fare cap, instead of fares going up by £10 a week, we’d be seeing £10 a fare…” 

It was suggested to Mr Streeting that the decision amounted to a tax on “working people” and he said: “But when you have got a Budget challenge as big as we have got and a deficit as big as we inherited, we are having to make some hard choices now so we are not paying a higher price for failure in the longer term.” 

Told again that it was a tax on “working people”, the Cabinet minister said: “You have got to judge that measure alongside the other measures the Chancellor is going to announce in the Budget.”

Wes Streeting has signalled there will be no help for higher earners in tomorrow’s Budget. 

The Health Secretary said Rachel Reeves, the Chancellor, is not “worried” about people who are towards the top of the salary league table but “she is worried about people on low and middle incomes”.

Mr Streeting was grilled over Labour’s “working people” tax pledge during an interview with Kay Burley on Sky News and he insisted: “I am a working person. Last time I checked I was working very hard.” 

He then failed to provide a firm definition for the term. 

He said: “And just on this working person point, I think what we mean is when we are making decisions, especially in the context of a Budget, who do we have in our minds eye and with the greatest respect to you and I and the jobs that we do and the salaries that we are on… I don’t think the Chancellor is worried about whether you or I are going to get by in the coming weeks, months and years. 

“She is worried about people on low and middle incomes.” 

NHS patients will still be waiting on trolleys in corridors this winter, Wes Streeting has admitted. 

The Health Secretary said it will take time to turn the NHS around. 

Asked if people will still be waiting on trolleys in the coming months, Mr Streeting told Sky News: “They are today. And they will be this winter. And I don;’t think that is acceptable. 

“I am going to work as hard as I can as fast as I can to stop that situation. 

“What you will get from me in the coming years is someone who is upfront about the challenges, isn’t going to stick their head in the sand or pretend there aren’t problems, so there will be people waiting on trolleys in corridors this winter. 

“I can’t turn that situation around that fast. What I can say is that we are going into this winter with NHS leaders able to prepare for winter rather than preparing for strikes.” 

Jeremy Hunt has written to Simon Case to warn that “basic rules of fairness are not being followed” amid a rumbling Budget row involving the Office for Budget Responsibility. 

The OBR, the Government’s spending watchdog, is expected to publish a review of the public finances under the Tories tomorrow, the same day as the Budget. 

The Tories believe the review will be used as cover by Rachel Reeves for her wave of tax raids and for political attacks. 

Mr Hunt has urged Mr Case, the Cabinet Secretary, to intervene: 

The OBR must be politically impartial and the public and markets need to know that it is holding the government to account without fear or favour.

I have written to the Cabinet Secretary to ask why basic rules of fairness are not being followed. If we are to keep the OBR out of… pic.twitter.com/iUsDEQTduA

Wes Streeting said Labour’s plan to boost NHS funding and for health service reform will result in waiting lists “tumbling”. 

The Health Secretary told Sky News: “Today we are announcing our delivery of our manifesto commitments that we said we would deliver: The 40,000 more appointments every week to cut NHS waiting lists and not just more appointments but reformed ways of working. 

“That work has already started, we have been on it since we were elected back in July, we have got crack teams of top clinicians going into hospitals from this week to help those with the highest waiting lists… to cut those waiting lists. 

“What the Chancellor will set out and more broadly in terms of capital investment in the NHS will enable us to start delivering our manifesto commitment of doubling the number of CT and MRI scanners over the course of the parliament so we can finally start seeing waiting lists tumble rather than increase in the way that we have seen under the Conservatives.” 

Wes Streeting said the NHS is “not just on its knees, it’s on its face” and that though Rachel Reeves is prioritising the health service, a single Budget will not turn it around.

“There’s no beating about the bush about it – whether it’s the size of the waiting list, the fact that people can’t guarantee an ambulance turns up on time, the struggle to get a GP appointment or a dentist, the waits in A&E, the NHS is not just on its knees, it’s on its face,” the Health Secretary told GB News.

The money coming in the Budget will allow the health service to double the number of scanners and start cutting NHS waiting lists in line with Labour’s manifesto pledges, he said.

“I think people are realistic. They know that we’re not going to turn the NHS around in just a few months or in a single budget. It’s going to take time and that’s why the Chancellor is prioritising the NHS in her Budget.”

It is “bogus” for Labour to claim that a Budget raid on employer National Insurance contributions is not a tax on “working people”, according to Sir Jacob Rees-Mogg. 

Rachel Reeves, the Chancellor, is widely expected to announce an increase in employer NICs tomorrow. 

Sir Jacob, the Tory former business secretary, suggested that the Government was “about to betray its core promise at the election”. 

He told GB News: “The Government is reported to be about to increase employer National Insurance contributions in a clear breach of its manifesto, which stated: ‘We will ensure taxes on working people will be 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.’

“Trying to pretend that National Insurance paid by employers is not a tax on working people is bogus. Employers only have a limited amount of money, and the money they pay on employing people comes from a single pot.” 

Sir Jacob Rees-Mogg said Labour was basing the Budget on a group of people it cannot even define as he took aim at ministers’ failure to define “working people”. 

Sir Keir Starmer said in a speech yesterday that working people “know exactly who they are” as he failed to provide a definition. 

Sir Jacob told GB News: “The Government is going to base its Budget on a group of people whom it cannot define. I rather like this idea of self-defining. If you define as a working person, then surely you can’t be taxed.”

He added: “So it seems that Labour has broken more of its promises, and workers, strivers and entrepreneurs will all be hit.”

The party promised in its manifesto: “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.”