All those left out of Starmer’s definition of working people

Keir Starmer pledged that 'working people' would not face tax rises under Labour government - Stefan Rousseau/PA

Sir Keir Starmer has suggested that millions of Britons are not covered by his manifesto pledge to “not increase taxes on working people”.

The Labour leader said he would define working people as those who have a job, rely on public services and do not have meaningful savings.

His remarks indicate that while he has ruled out raising income tax, national insurance or VAT, hikes to other levies could be on the table.

Here are the groups potentially not covered by Sir Keir’s manifesto pledge on taxes.

Savers

Sir Keir’s comments suggest anybody with meaningful savings is not considered a “working person” who should be protected from tax rises.

That indicates up to two-thirds of working households are not covered by the pledge, according to a Resolution Foundation report from February.

It found there are 11 million working-age people who have less than £1,000 in savings, which is considered the minimum required as a “rainy day” fund.

Fewer than half of working-age households in the United Kingdom had savings which were worth at least three months of income, the researchers found.

Pensioners

One group clearly not covered by the Labour leader’s definition of working people is pensioners, especially those reliant on private income.

Many retirees supplement their earnings with proceeds from investments on the stock market or by letting out properties as landlords.

Sir Keir’s remarks suggest such activities may not be exempt from future tax raids amid speculation he is planning a crackdown on reliefs.

Even the state pension may not be immune under Labour, with the value of the handout set to exceed the income tax threshold from 2027.

Investors

Sir Keir’s comments also suggest those who have income from investments, such as shares and cryptocurrency, may not be working people.

Figures show more than half of UK adults have invested in some form as of this year, whilst almost a quarter have put money into the stock market.

Investment is especially popular amongst Generation Z adults - those born after the mid-90s  - with nearly one in seven having taken part.

Labour could raid investors by hiking capital gains tax, which is paid on profits made from the sale of shares at a lower rate than income tax.

Landlords

Another group who may fall outside of Labour’s definition of working people are landlords, given that they own assets of substantial value.

There are 2.8 million landlords across the country, a large number of whom are private individuals who rely on rental income to boost their earnings.

A Government survey found that 43 per cent of Britain’s landlords own a single rental property, while a further 39 per cent own between two and four lets.

It has been suggested that Labour is readying a crackdown on landlords which could even see the imposition of rent controls at a local level.

Private service users

Sir Keir made specific reference to “working people” as those who “rely” on public services, opening the door to more taxes on private provision.

He is already lining up a tax raid on parents of children who are in private education with plans to apply 20 per cent VAT to independent school fees.

His definition raises the possibility Labour could also target private healthcare - currently used by one in eight Britons - by removing tax reliefs.

It may even cover use of public transport, indicating taxes on motorists such as fuel duty and more Ulez-style clean air zones.

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