Starmer Wavers on Tax Pledge Amid Economic Distress

UK Prime Minister Keir Starmer may backtrack on his no-tax-rise pledge as the economic forecast worsens. Tax hikes could be necessary to fill a large deficit, with the Labour government facing pressure to balance spending and revenue. A budget plan is due on November 26.

On Wednesday, Britain's Prime Minister Keir Starmer refrained from confirming his commitment to not increasing taxes on working citizens before next month's budget. This move comes amid forecasts indicating a greater economic downturn than anticipated.

Economist analyses suggest that Finance Minister Rachel Reeves might need to contravene the government's promise and elevate income tax. Such a decision would go against Labour's pre-election pledge for 2024. Kemi Badenoch, the Conservative opposition leader, queried Starmer on his stance concerning the potential tax increase.

Starmer pointed out that the official budget and its details will be unveiled on November 26. He underscored that Britain's diminishing productivity outlook is a testament to the 14-year Conservative reign's adverse effects. Meanwhile, it's speculated that potential tax rises could fill a 20 billion-pound gap in public finances.

(With inputs from agencies.)