KEIR Starmer is reportedly set to rule out raising taxes after the Tories stole parts of Labour’s plans to fund public services.

Labour appear to have been wrongfooted by the Chancellor’s Budget which saw the Tories adopt their opponents’ plans to close the non-dom tax loophole and extend the windfall tax on oil and gas companies.

Senior Labour figures have been unable to set out in detail how their plans differ from the Tories, with the party having earmarked the cash from ending non-dom status for investment in the NHS and free school breakfast clubs.

They are also put into a tough spot by aping the Tories “fiscal rule” of seeking to reduce debt in relation to GDP in five years’ time – meaning they have less room to manoeuvre on Government borrowing.

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This is coupled with major cuts in public spending the Government is expected to deliver, except in a handful of key areas such as health.  

But the i newspaper reports some in the party are pushing Starmer and shadow chancellor Rachel Reeves (below) to back down on their opposition to increasing or introducing new taxes.

The National: Rachel Reeves will pitch a Labour-led UK to the mega-rich in Davos

The paper reports that Reeves is said to be opposed to higher taxes on wealth but suggests Labour is open to increasing levies on firms which create pollution or damage public health, or reforming business tax allowances.

One Labour MP told the paper: “Labour is going to have to find some policies that strike out a different pathway forward for the country on the economy, or they will end up being the midwives of austerity 2.0 which will be a disaster for the country.”

The National: Stella Creasy

Stella Creasy (above), a leading backbencher, has called on Labour not to back the Tories taxation and spending policies in full, saying: “We cannot fix public services, cut taxes, foster long-term growth and boost investment simultaneously. For a better future something has to give and more has to change – and Labour needs the confidence to say so.”

READ MORE: Labour slammed as party 'backs ALL measures in Tory Budget'

Scottish Government reacts to 'betrayal' Budget as new Tory cuts expected

A Labour spokesperson said the party would come up with new ways of funding its stated spending commitments “in due course and in our own time”.

Party high command insisted they had “anticipated” Hunt stealing the non-dom policy, while other senior figures emphasised the high rates of taxation in Britain.

Jonathan Reynolds, the shadow business secretary, told LBC: “We can judge you, Jeremy Hunt, we can judge the Conservative Party by your record… Living standards are down, people’s taxes are high, the public services aren’t good enough. If you’re so confident in your jibber jabber, come on, let’s have a general election.”