Sir Keir Starmer issues tax warning to people who have stocks and shares

Sir Keir Starmer has issued a warning to those who earn their income from shares and property. The Labour Party government Prime Minister has hinted at tax rises for those who earn their income from shares and property, saying that they did not fit his definition of “working people”.

Ahead of the anticipated tax rises, the government has come under pressure to clarify its manifesto promise to “not increase taxes on working people”. Asked whether someone who works but also earns income from assets, such as shares and property, was a working person, Starmer told Sky News: “Well, they wouldn’t come within my definition.”

The prime minister’s spokesperson later clarified that he was referring to people who “primarily get their income from assets” and was “not precluding people that have a small amount of savings” in stocks and shares. Starmer told Sky News: “You can probably give me any number of examples … you’re asking me for a definition of who’s a working person, and then you’re making assumptions about what that tax might be in relation to.”

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Starmer was asked to set out his definition of working people by reporters travelling with him for the Commonwealth summit in Samoa. The PM said: “I have in mind people who go out earn their living, may have some savings, but don’t have the ability to sort of routinely write a big check if they get into difficulties.

“They’re the people uppermost in my mind when we’re making our decisions,” he added. It comes ahead of Chancellor Rachel Reeves delivering her Autumn Budget and fiscal statement next week, on Wednesday, in a major update and landmark address.

It comes amid reports Reeves is also looking at tightening the rules for inheritance and gift tax. Only about one in 20 UK estates now attract inheritance tax.