Back to today’s briefing

Story perspectives

Starmer's Tax Talks Spark Controversy Amid Austerity Fears

9/29/2025

46 11 Full Breakdown

Summary

Story summary

Sir Keir Starmer leaves open raising VAT, clashing with Labour's manifesto pledge not to raise taxes on working people.
Ipsos poll shows Starmer as the most unpopular prime minister since 1977.
Ministers press Rachel Reeves to ease rules amid fears austerity could push voters toward Farage.
Ministers demand more funding to meet manifesto commitments, citing frustration with current fiscal policy.

History

Historical Context

In 1974, the Labour government led by Harold Wilson faced severe economic challenges, with inflation soaring to 26% and controversial tax increases despite a manifesto promise against taxing working people. Today, Sir Keir Starmer's willingness to consider raising VAT echoes past tensions within the party, potentially alienating voters and recalling Labour's historical struggles during periods of austerity and economic discontent.

1 of 2

Story summary

Sir Keir Starmer leaves open raising VAT, clashing with Labour's manifesto pledge not to raise taxes on working people.
Ipsos poll shows Starmer as the most unpopular prime minister since 1977.
Ministers press Rachel Reeves to ease rules amid fears austerity could push voters toward Farage.
Ministers demand more funding to meet manifesto commitments, citing frustration with current fiscal policy.

1 / 2