LONDON — The man who wrote Labour’s election-winning manifesto said he stands by the party’s cast-iron commitment not to raise income tax, VAT or national insurance.
Ravinder Athwal, who left his role as Keir Starmer’s special economic adviser in July, argued Chancellor Rachel Reeves would not choose to raise these taxes in the upcoming autumn budget even if she were not bound by the host of strict pre-election pledges.
In an interview with POLITICO’s Westminster Insider podcast, the former Labour adviser insisted he does not regret committing to what’s become known as the “tax lock.”
“I’m not sure had the lock not been made, people [the Treasury] would have then looked to raise one of those taxes,” he said.
The lock has faced a political backlash from some Labour MPs over concern it has needlessly restricted the government’s ability to invest in public services given the eventual scale of the party’s 2024 landslide win.
Reeves is under pressure to find ways to raise revenue ahead of the autumn budget. She is bound by one of her own fiscal rules of not borrowing in order to fund day-to-day spending — leaving tax rises or spending cuts as alternatives.
Athwal acknowledged that it is likely Reeves will have to raise taxes elsewhere: “There are other options out there.”
He said he was confident that “the public would understand” such a move given the worsening global economic environment, in part due to tariffs introduced by U.S. President Donald Trump.
‘Difficult tradeoffs’
Following the government’s humiliating U-turns on welfare payments and the winter fuel allowance earlier this year, Labour’s former policy director rejected the suggestion of a disconnect between the Downing Street policy operation and the wider Labour party.
“I think it comes more from a not wanting to shy away from difficult tradeoffs, difficult problems, and really wanting to crack on and do things quickly,” he said. “I think that’s where it’s maybe gone wrong”.
Asked about whether he feels the government needs to reset its policy prospectus, given its declining poll numbers, Athwal was defiant. “A lot of things that have happened over the last year which don’t necessarily get shiny headlines and I’m not sure I’d expect the average member of the public to have noticed them,” he said.
But he added: “They will make a difference as long as the government remains focused on the delivery of them.”
Athwal described a feverish effort in government to make good on growth-boosting infrastructure projects. “I see Rachel Reeves sit there with her table of projects that she has announced and really honing in on asking, is this thing being delivered? And I think Keir is exactly the same way.”
But Athwal acknowledged that time is of the essence – especially given the growing popularity of Nigel Farage and Reform UK, which continues to lead in U.K. polls.
He reflected: “The thing that is fueling the popularity of Farage is the sense that the country is not working.”
Labour, he said, needs to deliver quickly. “The electorate isn’t attached to the Labour Party in the way that I am … they’ll deliver their judgment.”
The post Labour’s election manifesto author doubles down on controversial tax pledges appeared first on Politico.
