PM Keir Starmer and his cabinet ministers are currently divided over the definition of a “working person” as they prepare for the upcoming Budget. The term has become contentious as Labour pledged not to increase taxes on working people in their manifesto, leading to questions about who exactly falls under this category. Different ministers have offered varying definitions, with Chancellor of the Duchy of Lancaster, Pat McFadden, emphasizing those who pay income tax, VAT, or NICs, while others like education secretary Bridget Phillipson and health secretary Wes Streeting have highlighted their own incomes as examples. Chancellor Rachel Reeves has reiterated the commitment to not raise key taxes for working people, while PM Starmer defined working people as those who earn their living through work and do not have additional income from assets. The debate over this definition continues as the Budget approaches.
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