Eamonn Holmes sends chilling warning to Keir Starmer as Rachel Reeves mulls stealth tax raid
Eamonn Holmes has suggested the Prime Minister’s political future is inextricably linked to his Chancellor in a shock prediction on GB News.
“Starmer is tied to Rachel Reeves. If Rachel Reeves goes, he will have to go as well I think, which is why I think she will stay,” Eamonn said on the People’s Channel.
Eamonn expressed frustration with the Government’s rhetoric, stating: “It really annoys me when they talk about hard-working people as if people who earn a lot of money aren’t hard-working.”
Panellist Clare Muldoon joined the criticism, predicting that despite Government denials, tax increases are inevitable.
“They say they aren’t raising taxes but they are, they will, mark my words,” Muldoon warned viewers.
Muldoon outlined how the Government plans to implement tax increases without explicitly raising rates.
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“It will be by stealth. The way they are doing it is by freezing income tax levels beyond the 2028 threshold,” she explained.
The broadcaster warned that this approach would have widespread consequences through fiscal drag.
“That will give rise to fiscal drag and more people, including pensioners, will be put into a higher tax bracket,” Muldoon said.
Her comments come as Labour faces mounting pressure over its economic strategy, with ministers repeatedly refusing to rule out various forms of tax increases.
The freeze on income tax thresholds means that as wages and pensions rise with inflation, more people automatically move into higher tax bands without any change to the tax rates themselves.
Ministers have continued to dodge questions about potential tax rises, with Transport Secretary Heidi Alexander refusing to rule out new levies yesterday.
Alexander confirmed that Cabinet ministers discussed fiscal matters during an away day at Chequers on Friday, though she claimed they did not “directly” discuss a wealth tax.
When pressed on autumn tax rises, she declined to speculate but stated: “When it comes to taxation, fairness is going to be our guiding principle.”
The Transport Secretary reiterated the government’s manifesto pledge, saying: “We made a commitment in our manifesto not to be putting up taxes on people on modest incomes, working people. We have stuck to that.”
Her careful wording notably referred only to those on “modest incomes”, potentially opening the door to tax increases on middle-class earners.
Labour’s manifesto promised not to increase taxes on “working people”, including national insurance, income tax or VAT, but the definition of this term has remained contentious since the election.
The Chancellor has notably refused to rule out tax rises at the Budget following the government’s reversal on welfare reforms that would have saved £5 billion.
The Office for Budget Responsibility warned last week that UK state finances are on an “unsustainable” path due to spending commitments the government “cannot afford” long-term.
Reeves faces pressure from Labour MPs and unions to introduce a wealth tax to balance the books.
Some quarters have suggested she could also increase business rates for department stores and supermarkets to raise £1.7 billion.
Shadow Chancellor Mel Stride claimed Labour “is sending investors running” because they know “tax rises are coming”.