We Are Working People, Disgruntled Landlords Tell The Prime Minister

Landlords and shareholders face being hit with tax rises in this week’s Budget after Sir Keir Starmer suggested that they are not “working people”.

The prime minister caused a stir over the weekend after he said those who earn additional income from property and investments are not covered by Labour’s manifesto pledge to protect “working people” from paying more.

His remarks – made on the sidelines of the Commonwealth heads of government meeting in Samoa – will increase fears that he and Rachel Reeves, the chancellor, are set to target those with assets in the Budget on Wednesday.

Labour’s manifesto ruled out putting up rates of income tax, employee National Insurance or VAT, and said that “working people” would not pay more tax.

Speaking at the Commonwealth summit in Samoa, the PM said a “working person” is somebody who “goes 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, he told the press: “Well, they wouldn’t come within my definition.”

Starmer’s suggestion that landlords are not ‘working people’ is mistaken, argues NRLA chief executive Ben Beadle.

He said: “It’s depressingly familiar.

“The tired rhetoric of the fat cat landlord living a life of luxury, paid for by their hardworking tenants.

“We’ve heard it time and time again, but it was disappointing to hear it from our prime minister.”

Beadle points to 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.

Beadle continued: “It couldn’t be more categoric. We are working.

“We are also not the ‘fat cats’ some elements of the media would have us believe, with almost 70% basic rate taxpayers. Read that figure again. 70%.”

Several landlords spoke to the media over the weekend to vent their fury at Starmer’s comments.

Among them is Patricia McGirr, of Rossendale, Lancashire, who has been a landlord and small business owner for more than 20 years and said she had “worked long and very hard week in and week out”.

The 59-year-old, who runs the Repossession Rescue Network, told MailOnline: “I worked for the NHS for 14 years and began to invest to safeguard my family.

“The prime minister and his cabinet are out of touch to think small business owners and landlords don’t actually work for their money. Their policies are pushing everyone to the brink when they rely on the private rental sector for much needed capacity.”

Another landlord, Jon Richelieu-Booth, of Silsden, West Yorkshire, said he became redundant after Lloyds bought HBOS in 2008 and went into contracting.

He comemnted: “I have saved and sacrificed in order to buy my own home, pay the mortgage off and rent it out upon moving into a new home.

“I have also been able to loan a friend my £9,000 of savings when the very system that should help someone out of work failed him.’

Richelieu-Booth added “I regret voting for Labour in this election, it was fuelled by believing they were the only ones that could oust Sunak and that the country desperately needed change.

“Sadly Starmer and Reeves have done irreparable damage in such a short time and I don’t see how the UK can come back from this.”

Up to five million homes could be at risk if Labour hits landlords with income tax hike, according to Bea Montoya, COO Simply Business, who insure nearly one million SMEs and landlords in the UK.

Montoya said: “Landlords will feel concerned with the prime minister failing to rule out income tax rises next week.

“Over a third of landlords say they are already planning to sell up in the next 12 months, removing five million rentable homes in an already stretched market. Tax increases are stated as the main reason for this, with 43% of those selling up saying this is what will push them out.

“The Budget could prove to be a key moment for the UK rental market. Some Landlords might have the means and opportunity to weather the likely storm, but more tax raises will be the final straw for others – having already faced mortgage cost increases and expensive energy efficiency requirements for their properties.”

Nine in 10 landlords say Labour government spells bad news for buy-to-let