The NRLA has hit back at Sir Kier Starmer’s assertion that landlords are not working people – and thus may be in line for tax rises in this week’s Budget.
In an interview with Sky News at the start of the weekend, the Prime Minister repeated the mantra that ‘working people’ would not be taxed more heavily after the Budget than before. He was challenged to define who ‘working people’ were and he suggested those who “go out and earns their living, usually paid in a sort of monthly cheque’ but they did not have the ability to ‘write a cheque to get out of difficulties.”
And when asked if this would include people who get all or part of their income from assets such as property, he said: “Well, they wouldn’t come within my definition.” He similarly branded those with shares as similarly not being ‘working people’.
Labour’s manifesto said the party would not increase taxes on working people, including VAT, national insurance, and income tax.
Starmer’s remark drew a sharp response from Ben Beadle, chief executive of the National Residential Landlords Association, who comments: “It is simply not true that landlords are not working people.
“Official data shows that 30% of landlords are employed full time, with a further 10% working part-time. 28% are self-employed in some way, while 35%are retired and are likely to rely on their rental income for their pension.
“Rather than stoking misconceptions, the Government needs to focus instead on the key challenge in the rental market, namely a lack of homes to rent to meet ever growing demand.”
However, the government has doubled down on the claim.
Over the weekend Treasury minister James Murray hammered home the definition, telling Sky News that “a working person is someone who goes out to work and who gets their income from work … We’re talking about where people get their money from, and so working people get their money from going out to work.
“And it’s that money that we’re talking about in terms of those commitments we made around income tax, around national insurance. That’s what’s important to focus on, where people are getting their money from, getting their money from going out to work.”
Simultaneously there are indications that speculation over possible tax rises have dented consumer confidence in the UK.
Susannah Streeter, head of money and markets at business consultancy Hargreaves Lansdown, says: “A survey from GfK indicates that a despondent mood has taken hold ahead of revelation of the government’s tax and spending plans with concerns about the UK economy rising. GfK’s consumer confidence survey fell one point to -21 in October from -20 in September.
“This is the lowest since March, when the former Conservative Chancellor Jeremy Hunt delivered his last Budget.
“However, with fresh interest rate cuts expected optimism around consumers’ finances and confidence about making major purchases ticked up. This will provide hope that once the government’s financial plan becomes clear, uncertainty may ease off and overall consumer confidence may rebound.”
