A Labour shadow Treasury minister misspoke twice on Thursday by suggesting his party would freeze thresholds for income tax, national insurance and VAT.
Darren Jones, shadow chief Treasury secretary, told BBC Radio 4: “Income tax, national insurance, VAT thresholds — all of these, the current status of affairs, will not be changing under a future Labour government.”
He repeated the suggestion, saying of his party’s position: “Income tax, national insurance, VAT — tax thresholds on those measures of tax will not be changing under a future Labour government.”
However, Labour officials swiftly signalled Jones had misspoken and clarified that the party’s pledge is about rates on income tax, national insurance and VAT, which it has vowed not to raise.
Chancellor Jeremy Hunt said on Thursday that the Conservatives would continue to freeze income tax thresholds until 2028 before raising them, dragging more people into paying income tax, or paying higher rates, as wages rise due to inflation.
Hunt’s remarks may nonetheless offer Labour cover to follow suit by freezing income tax thresholds for the next four years, in a move that would be branded a “stealth tax” by critics but would raise significant sums for the exchequer.