Keir Starmer has cautioned about upcoming “tough but equitable” choices in the Budget amidst a challenging economic environment.
During a private meeting with Labour MPs, the Prime Minister highlighted the lasting effects of Tory austerity and a problematic Brexit deal, stating the situation is more severe than anticipated. He assured that a future Labour government would prioritize Labour values, safeguard the NHS, and enhance the standard of living for struggling individuals.
As Chancellor Rachel Reeves grapples with a £20 billion to £30 billion deficit in public finances to adhere to spending regulations, expectations are high for her upcoming Budget announcement on November 26, including a significant economic address this week.
Recently, Keir Starmer refrained from reiterating Labour’s pledge to shield working-class citizens from tax hikes, sparking speculation of potential income tax increases in the Budget, which could contradict the party’s election promises.
Speaking to the Parliamentary Labour Party (PLP), Starmer emphasized that the Budget would align with Labour’s principles, focusing on protecting public services like the NHS, reducing national debt, and improving living standards. Despite the UK’s strong economic performance in the G7 earlier this year, he acknowledged the challenging economic circumstances surrounding the Budget.
Criticizing the Tories for their handling of the economy, Starmer emphasized the need for resolute decisions to rebuild the country for the long term, emphasizing the importance of Labour’s governance. He also criticized Reform UK leader Nigel Farage’s proposed spending cuts, warning against potential NHS reductions and highlighting contrasting priorities.
Senior Labour MP Dame Emily Thornberry emphasized the importance of unity and discipline among Labour MPs leading up to the Budget. She suggested privately sharing ideas with Rachel Reeves for potential improvements rather than publicly voicing opinions.
