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Labour's 'Working People' Tax Pledge Reportedly Set Below £46,000 as Cabinet Split Opens

Treasury guidance reportedly shields earners under roughly £46,000 to maintain Labour’s promise.

Overview

  • Sky News and the Daily Mail report that Rachel Reeves has asked officials to protect the bottom two-thirds of earners, effectively setting the pledge’s cutoff near £46,000.
  • Commentary notes the reported definition would exclude many mid-earning professionals, with roles such as teachers, nurses and police sergeants potentially facing higher taxes.
  • The Independent reports an internal split between ministers who favour openly raising income tax and those seeking to avoid breaching manifesto language.
  • Labour’s manifesto caps corporation tax at 25%, narrowing revenue options and increasing reliance on threshold freezes or other indirect measures.
  • The Daily Mail cites projections of about 3.5 million more higher‑rate taxpayers by 2028/29 from frozen bands and reports unconfirmed options under discussion, including changes to pension tax relief and a departure charge for wealthy leavers.