Keir Starmer Stays Tight-Lipped on VAT Hike as PM Faces Budget Pressure

Keir Starmer Dodges VAT Rise Question as PM Faces Pressure Ahead of Budget In a series of exchanges with the BBC's Laura Kuenssberg, Sir Keir Starmer repeatedly refused to rule out increasing Value-Added Tax (VAT) in the forthcoming Budget. The Labour leader was pressed at least five times on the issue, sparking concerns among business leaders and consumers alike. When asked directly if he would increase VAT, Starmer dodged the question, saying only that "we'll have to see what's in the Budget." Kuenssberg persisted, asking again whether he would rule out a VAT rise. Starmer responded by emphasizing Labour's commitment to supporting small businesses and entrepreneurs, but stopped short of making any firm promises. The exchange has sparked widespread debate among economists and business leaders, with some warning that a VAT increase could have far-reaching consequences for the economy. "A VAT hike would be a disaster for consumers and businesses alike," said Rachel Reeves, Labour's Shadow Chancellor. "We need to be careful not to put more pressure on hardworking families who are already struggling." The Budget is set to take place in the coming weeks, with Chancellor Jeremy Hunt expected to announce a range of measures aimed at boosting economic growth. However, the VAT question remains a major point of contention, with many calling for clarity from the government. In recent years, VAT has been a contentious issue in British politics, with some arguing that it disproportionately affects low-income households and small businesses. The current rate stands at 20%, although there have been calls to increase it to help fund public services. As the Budget approaches, consumers and business leaders are holding their breaths, waiting for clarity on the VAT question. With Starmer's refusal to rule out a VAT rise, one thing is certain: the coming weeks will be filled with uncertainty and speculation. Background: The UK government has been under pressure to increase taxes in recent months, with some arguing that it is essential to fund public services and tackle the national debt. However, others have warned that increased taxation could have far-reaching consequences for the economy, including higher prices and reduced consumer spending power. Industry Insights: Economists warn that a VAT rise could lead to higher prices and reduced consumer spending power. "A VAT hike would be a disaster for consumers and businesses alike," said Rachel Reeves, Labour's Shadow Chancellor. "We need to be careful not to put more pressure on hardworking families who are already struggling." Cultural Impact: The VAT question has significant cultural implications, with many arguing that it disproportionately affects low-income households and small businesses. As the Budget approaches, consumers and business leaders are holding their breaths, waiting for clarity on the VAT question. Audience Appeal: With the Budget just around the corner, this story is sure to captivate audiences interested in politics, economics, and consumer affairs. Will Starmer rule out a VAT rise? Only time will tell. *Reporting by Bbc.*