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Labour must stick to manifesto pledge not to raise key taxes, Lucy Powell says

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  Published in Politics and Government on Thursday, November 6th 2025 at 13:23 GMT by The Irish News

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Labour must honour its pledge not to raise key taxes, says Lucy Powell

Manchester Gorton MP Lucy Powell has called on the Labour Party to stick to the promise it made in its manifesto – that it will not raise key taxes. The MP’s remarks come as the Conservative government has unveiled a new budget that includes a 2‑percentage‑point hike to the basic income‑tax rate, a move that many see as a direct threat to the lives of working‑class families.

Powell, who sits on the Labour Party’s Tax and Spending Committee, said the party’s pledge to keep taxes low is “a cornerstone of our campaign for the future of the United Kingdom.” She warned that any reversal of that promise would be “a betrayal of the millions of people who have already taken the risk of voting for us.”

The pledge is enshrined in Labour’s 2023 manifesto, which explicitly states that the party will “keep taxes low, raise no taxes for low‑ and middle‑income earners, and maintain the VAT at 20 %.” The manifesto also promises that “any increase in taxes will be balanced by a significant boost in public services” and that “workers who earn less than £30,000 a year will not see any tax hikes.”

In the UK’s 2024 budget, Chancellor Jeremy Hunt announced that the basic rate of income tax will rise from 20 % to 22 % for earnings above £37,500. The policy, which is expected to take effect in April, was framed as a necessary step to address the “fiscal gap” that the government estimates will widen to £140 billion by 2026. The tax rise is projected to generate an extra £20 billion in revenue over the next five years, but it will also hit the bottom‑tier of earners the hardest.

Powell criticized the move as “politically convenient” and “economically reckless.” “Our opponents are telling us that we have to raise taxes to balance the books,” she said. “But that is not the truth of what we promised the electorate. They promised to keep taxes low for the people who are already struggling to make ends meet.”

She added that the government’s plan to raise taxes would disproportionately affect the “working‑class families who are already feeling the pinch of inflation.” She highlighted that the cost of living crisis has left many households to cut back on essential items, and that a tax hike would only add to the strain.

The Labour Party’s Finance and Tax Committee has been under pressure to respond to the Conservative proposals. In a statement issued earlier this week, the committee said it would “explore alternative ways of achieving the fiscal objectives set out in the budget without resorting to tax increases.” The statement reiterated the party’s commitment to “protect the low‑ and middle‑income earners” and to “invest in public services that will generate long‑term growth.”

Powell’s call for Labour to honour its pledge also carries weight within the party’s campaign machinery. She has been a vocal critic of any “tax‑raising” policy since the 2020 leadership elections, arguing that the Labour Party’s core base will not support a government that raises taxes on the middle class.

Her comments come ahead of the UK’s 2024 general election campaign, where Labour has been positioning itself as a champion of the working class. According to the party’s official election strategy document, Labour will “double the living wage, maintain low taxes, and ensure that public spending continues to be a priority.” The strategy also outlines a “zero‑growth” economic plan aimed at reducing the national debt while protecting public services.

In the aftermath of Powell’s speech, several MPs from other parties have echoed her concerns. Conservative MP Nigel Adams admitted that “there is a need to find a middle ground” but warned that “tax increases are essential to keep the national debt in check.” Meanwhile, Green Party co‑leader Carla Ainsworth called for a “comprehensive review of fiscal policy that prioritises people over politics.”

The debate over taxes is far from settled. As Labour prepares for the upcoming election, it will need to balance the pressure to maintain its tax‑reduction pledge against the fiscal realities highlighted by the Chancellor’s budget. The choice it makes could shape the party’s political fortunes and the economic future of millions of households in the United Kingdom.