Labour leader Keir Starmer's recent remarks about the definition of "working people" have triggered quite the storm, especially as the party prepares for its first significant budget under new leadership. Starmer's statement—declaring those who earn income from shares or property do not qualify as "working people"—has led to confusion and concern among many, particularly the UK's 2.82 million private landlords who now fear their financial burdens may increase.
An interview with James Murray, the Exchequer Secretary to the Treasury, proved particularly contentious. During his appearance on LBC, broadcaster Nick Ferrari repeatedly pressed Murray to clarify whether landlords should be considered "working people." Despite multiple attempts to get a straightforward answer, Murray responded evasively, saying it "depends where people earn their money from." This ambiguity sparked frustration, leaving many to wonder if landlords would be affected by Labour's tax promises.
Starmer's comments, made during a Sky News interview, attempted to delineate who should be regarded as working people. He described them as those who go out to earn their living, typically receiving monthly paychecks. This stance, where landlords and those reliant on asset income are excluded, seems to pave the way for potential tax hikes.
Murray's lack of clarity during his interview did little to help the situation. Ferrari remarked, "You’re a very bright bloke. You know how a landlord makes his or her money. Is a landlord a working person?" Murray's non-response led Ferrari to express his exasperation, threatening to end the interview altogether. It clearly raised the question: how can the government promise to protect "working people" when there’s such inconsistency about who fits this label?
Following Starmer's pronouncement, there was immediate pushback from organizations like the National Residential Landlords Association (NRLA), which emphasized the hardworking nature of many landlords. According to their data, around 30% of landlords are employed full-time, with 10% working part time, and another 28% self-employed. Ben Beadle, NRLA's CEO, urged the government to focus on addressing the underlying housing shortages rather than stoking misconceptions.
Starmer doubled down on his prior definitions as critics began to weigh the potential impact on tax policy. His insistence on classifying working people narrowly could potentially alienate large segments of voters who rely on rental income, thereby undermining the Labour Party's election manifesto pledges which promised not to raise taxes for this demographic.
A senior party source illuminated the tension behind closed doors, indicating the party’s struggle to reconcile Starmer's statements with broader party views on economic responsibilities and fairness. With Labour needing to raise £40 billion to balance the public finances, tax hikes seem inevitable, and how this aligns with Starmer's working people definition remains murky.
This controversy over definitions follows pressure from various quarters, with critics asserting the government's attitude reflects outdated views on employment and economic contribution. Notably, this discussion occurs as Labour faces its first budget, expected to introduce significant fiscal changes including likely tax increases and spending cuts.
Further complicate matters is the broader economic sentiment. Just days prior to this fracas, Starmer had conveyed skepticism about ensuring protections for working people, warning instead of austerity measures on the horizon. Such comments are bound to reverberate, especially among those not comfortable with the definitions being applied.
Now, as anticipation builds for the Labour budget on October 30, the exact nature of the definitions and the consequences of Starmer's declarations loom large. Voters are left wondering who will really benefit from these pledges and whether their financial situations will be prioritized by the government under the current manifesto promises.
The upcoming budget’s revelations will undoubtedly play out against this backdrop of confusion, leading the electorate to seek clarity on the government’s priorities. Are small landlords considered working individuals? Will those with investment incomes find themselves facing heavier tax burdens? Only time will tell, but for now, Starmer's ambiguous comments continue to raise more questions than answers.
For now, the Labour Party is caught between its promises and the realities of governance. The stakes are high as they navigate the turbulent waters of public perception and party ideology, all the whilst ensuring they can balance budgetary needs with the interests of hard-working Britons—whatever definition they may fall under.
