Keir Starmer has cautioned about forthcoming “tough but equitable” measures in the upcoming Budget due to challenging economic circumstances. Speaking to Labour MPs in a private meeting, the Prime Minister highlighted the severe long-term effects of Conservative austerity and a flawed Brexit agreement, stating the situation is graver than anticipated. He assured that a Labour government would prioritize safeguarding the NHS and enhancing living standards for struggling individuals.
Meanwhile, Chancellor Rachel Reeves is grappling with a significant £20 billion to £30 billion deficit in public finances to adhere to her spending guidelines ahead of the Budget presentation on November 26. Speculation has arisen that Reeves might consider raising income tax, contradicting Labour’s previous commitment to shield workers from such hikes as outlined in their election manifesto.
Addressing the Parliamentary Labour Party on Monday evening, Starmer emphasized that the Budget would be rooted in Labour’s principles, focusing on protecting public services like the NHS, reducing national debt, and easing the cost of living. Despite the UK’s strong economic performance within the G7 earlier this year, the Budget preparations are being made amidst challenging economic conditions.
Starmer criticized the Conservatives for their economic policies, asserting that the impact of Tory austerity, Brexit, and the pandemic on productivity is more severe than initially believed. He pledged that Labour would make necessary but just decisions to revitalize the country for the long term. Starmer also criticized Nigel Farage’s Reform UK party for proposed cuts that could harm the NHS, labeling their priorities as skewed towards benefiting billionaires over the working class.
Additionally, senior Labour MP Dame Emily Thornberry stressed the importance of unity and discipline among Labour MPs leading up to the Budget. She encouraged MPs to share ideas for enhancing the Budget privately with Rachel Reeves rather than publicly, emphasizing the importance of coherence within the party.