🇬🇧 Starmer Rejects Claims of Lying to the Public Over Budget Announcement
Prime Minister Sir Keir Starmer has denied accusations that his government misled the public ahead of last week’s major Budget announcement.
The criticism centres on comments made by Chancellor Rachel Reeves in the run-up to the Budget, where she repeatedly warned that weaker-than-expected productivity forecasts could force the government to raise income tax rates despite Labour’s manifesto pledge not to do so.
Opposition figures, including Conservative leader Kemi Badenoch, say these warnings created a “false impression” that income tax rises were coming, describing the messaging as a “smokescreen” for other tax increases later introduced in the Budget.
Sir Keir insists this was not the case.
In a speech on Monday, Sir Keir Starmer said there was “no misleading”, explaining that the government was working with downgraded productivity forecasts which reduced their expected headroom by £16bn.
This, he said, created a “difficult starting point”, and at one stage ministers did believe they would have to break the manifesto promise on income tax.
However, he confirmed that later wage forecasts increased expected tax revenues, allowing the government to avoid raising tax rates though the Budget did include £26bn in tax rises, mainly through extending freezes on tax thresholds.
The prime minister said he was “proud” of the Budget overall, highlighting measures aimed at reducing child poverty, protecting the NHS, and tackling the cost of living.
The Office for Budget Responsibility (OBR) revealed it had informed the Treasury before Reeves’ November news conference that stronger wage forecasts would offset the productivity downgrade.
But this wasn’t made public until later leaks, prompting accusations from critics that the government was preparing people for tax rises it knew might not occur.
The situation escalated further when OBR chairman Richard Hughes resigned after the Budget analysis was accidentally published online nearly an hour early a release containing market-sensitive information.
Opposition parties have since accused Reeves of misleading the public, with some including Reform UK leader Nigel Farage calling for her resignation. Starmer has dismissed these calls.
This row has raised questions about transparency, tax policy, and how governments communicate difficult financial decisions.
👉 Do you think the government misjudged the messaging or was it simply reacting to fast-changing financial forecasts?
👉 Do Budget “signals” before announcements help people prepare, or just create panic?
Share your thoughts below
👇Please keep discussion respectful political debates can get heated, but everyone’s view is welcome.
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