In an exclusive interview, Keir Starmer reflected on the government’s upcoming budget and potential tax changes, particularly regarding those who derive income from assets. When asked about his definition of “working people,” Starmer stated that individuals who earn from shares and property do not fit within his criteria. “Well, they wouldn’t come within my definition,” he told Sky News.
As the government prepares for potential increases in inheritance tax and capital gains tax (CGT), pressure has mounted for clarity on the manifesto promise to avoid raising taxes on working people. Starmer’s definition specifies those who primarily earn their income from labor, with exceptions made for those with modest investments. “I have in mind people who go out to earn their living, may have some savings, but don’t have the ability to sort of routinely write a big cheque if they get into difficulties,” he elaborated.
This debate has become more urgent as ministers have not ruled out raising national insurance on employers. During the Commonwealth summit in Samoa, Starmer emphasized the need for “tough decisions” in the budget, indicating that CGT—currently capped at 20%—is likely to rise, although property sales might remain unaffected to avoid slowing the market.
When pressed on whether landlords would be classified as working people, Treasury Minister James Murray declined to provide a straightforward answer. “Working people are people who go out to work for their income,” he reaffirmed during a BBC Radio 4 interview. Despite the ongoing conversation about taxation, Murray insisted any fiscal rule changes would align with Labour’s original manifesto commitments.
