Education Secretary Bridget Phillipson has refused to explicitly rule out tax rises for working people with investments in the upcoming Budget.
Labour is facing increasing pressure to clarify their tax plans ahead of the Budget, with Prime Minister Sir Keir Starmer struggling to define what a “working person” is.
The Government has cited a “£22billion black hole” in public finances left by the previous Conservative administration, potentially necessitating tax rises to avoid spending cuts.
Speaking to GB News on The Camilla Tominey Show, Phillipson said: “We’ll hold to our manifesto commitment, and what your viewers will see is that in their payslips coming out of the Budget, they won’t face higher taxes because we will not increase VAT, National Insurance, or income tax on people who go out to work.”
Bridget Phillipson was grilled by Camilla Tominey on Labour’s upcoming Budget
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However, when pressed on whether this protection extends to those with additional income from investments, Phillipson avoided giving a direct answer.
She emphasised that the Government’s definition of a working person is “someone whose main income is derived from going out to work”.
Phillipson’s reluctance to provide specifics extended to questions about whether teachers with rental properties would be considered working people.
She said: “Teachers are working people. But you know, again, you’re asking me to speculate on wider measures.”
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The Education Secretary also acknowledged that people with modest incomes often have investments, saying: “I do agree that you will often see people, not necessarily those who have big incomes, who will have investments, whether that’s in, for example, property or elsewhere.”
However, she remained firm on the Government’s commitment to protect those whose primary income is from employment, arguing: “What our manifesto was clear about was that we didn’t want working people to face higher taxes.”
Labour’s plan to charge VAT on private school fees has also been a contentious issue.
Phillipson defended this policy, stating: “I think private schools, like all businesses, can make choices about how they spend their money.”
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She argued that private school fees have increased significantly over the past decade, beyond recent cost of living pressures.
Phillipson framed the policy as a political choice, saying: “The choice that we’re making, however, is that we believe we should invest in state education, and we’ll do so by imposing VAT on the fees that they charge.”
She later emphasised the Government’s focus on state schools, adding: “The majority of your viewers will send their kids to state schools. What they want to see is investment in our state schools.”
