Keir Starmer has fuelled speculation that Labour may raise income tax in the autumn budget after refusing to reaffirm the party’s election pledge not to increase income tax, national insurance or VAT. Questioned in the Commons, he cited bleak new productivity forecasts from the Office for Budget Responsibility, which have deepened the £20 billion gap facing Rachel Reeves. Treasury officials are modelling options including a 1p or 2p rise in the basic rate of income tax, possibly offset by cuts to national insurance, to raise up to £8 billion annually. Reeves is also considering freezing tax thresholds, potentially drawing more workers into higher bands, and reviewing the windfall profits levy on oil and gas firms to encourage new investment. Starmer, while claiming there would be 'no return to austerity', said the poor fiscal inheritance from the previous government demanded 'difficult choices’. Critics accused Labour of preparing tax rises because it cannot control spending, while supporters argue that fair reform is needed to restore economic stability. See also