SIR Keir Starmer has paved the way for tax hikes this autumn — putting a damper on today’s expected interest rate cut.
The Prime Minister failed to explicitly rule out increases to income tax or National Insurance in the Budget to plug a multi-billion-pound black hole .
His refusal to reaffirm manifesto commitments comes as experts warn an eye-watering £50billion is needed just to maintain Chancellor Rachel Reeves ’ £9.9billion financial buffer.
Speaking on a visit to Milton Keynes , Sir Keir said: “In the autumn, we’ll get the full forecast and obviously set out our Budget.
“The focus will be on living standards, so that we will build on what we’ve done in the first year of this government.
“We’ve stabilised the economy .
“That means interest rates have been cut now four times.
“For anybody on a mortgage , that makes a huge difference on a monthly basis to how much they pay.”
No10 tried to play down the comments, saying the Government remains committed to its manifesto by not raising taxes on working people.
But the National Institute of Economic and Social Research has said the Chancellor is likely to be forced into raising taxes and cutting spending just to meet the massive shortfall.
Despite the economic gloom, homeowners are set to receive a boost from the Bank of England today.
Experts predict bank chiefs will cut i nterest rates by 0.25 per cent, even though inflation is stubbornly high and growth weak.
TOWN HALL CASH ALERT
ONE in four English town halls will lose money under Labour’s shake-up to council funding, experts warn.
Areas like inner London face risking cash to go to services, while the East Midlands and Yorkshire are set for the biggest cash windfalls.
The Institute for Fiscal Studies, said changes will “sting” for councils set to lose out.
Labour’s changes, still being consulted on, are due to come into effect next year.
