While political tensions heat up within the Labour Party, Prime Minister Keir Starmer is keeping his cool—refusing to bow to increasing calls from the party’s left flank to raise taxes on the wealthy.

Instead, he’s holding firm on his commitment to economic stability and promising clarity soon on key benefit decisions.

No Appetite for New Wealth Taxes

Amid growing pressure from Labour MPs and activists to introduce “wealth taxes” in order to boost welfare spending and public services, Starmer made it clear this morning that he’s not on board.

He argued that the UK’s current tax load is already high and warned against placing more pressure on taxpayers.

Speaking on BBC Radio 4’s Today programme, he stressed the importance of fiscal responsibility: “We had to stabilise the economy and close a £22 billion black hole.

I won’t walk away from that responsibility.”

Winter Fuel Payment Changes May Be Coming Soon

Although he’s resisted calls for new taxes, Starmer did hint that changes are on the horizon—particularly regarding the controversial winter fuel allowance.

With rising concerns about pensioners struggling this coming winter, Starmer acknowledged the urgency of the issue and said announcements could be made as early as next week’s Spending Review.

“I get it,” he said. “If we’re going to revisit eligibility for pensioners, then the sooner we clarify that, the better.”

Two-Child Benefit Cap Still Under Review

As for the ongoing debate around the two-child benefit cap, Starmer offered a measured response.

He wouldn’t commit to scrapping the policy but acknowledged it’s under active review.

“There’s no silver bullet,” he explained. “Child poverty isn’t just about one policy.

It’s a complex issue with multiple contributing factors.”

He reiterated his goal: “I want this Labour Government to reduce child poverty. That’s my priority.”

Internal Labour Tensions on the Rise

Behind the scenes, discontent is bubbling among Labour MPs. A recent Survation poll found that nearly two-thirds of them oppose Chancellor Rachel Reeves’ strict fiscal rules.

Roughly 20% would prefer to raise taxes rather than cut spending, especially on vulnerable groups.

Deputy PM Angela Rayner reportedly pushed hard for tax increases over benefit cuts earlier this year, lobbying for a different approach ahead of the Spring Statement.

Now, frustration is growing over proposed limitations to disability benefits, with critics warning of the risks to Labour’s unity and public image.

Farage and Reform Party Capitalise on the Gaps

The timing of this internal debate hasn’t gone unnoticed.

Reform UK leader Nigel Farage recently seized the moment, promising to fully reverse winter fuel cuts and scrap the two-child cap altogether.

His stance has resonated with voters frustrated by both Labour and Conservative policies—contributing to a noticeable boost in the polls for Reform since the local elections.

Starmer, meanwhile, continues to walk a tightrope between balancing the books and delivering on Labour’s social promises.

The big question is whether he can keep both the party and the public onside as the Spending Review approaches.