Sir Keir Starmer says 'tax rises will prevent austerity' as he seeks to reset narrative around Budget

Sir Keir Starmer has said that “borrowing will drive long-term growth, tax rises will prevent austerity” as he sought to change the narrative around Labour’s first Budget.
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The Prime Minister and Chancellor have repeatedly claimed that they were left a £22 billion black hole in the public finances by the Tories, and that will lead to “tough decisions” in the Budget.

This has led to negativity from the British public according to More In Common’s latest polling, with more than a third of people feeling pessimistic about the Budget and 70 per cent of people saying things in the UK are getting worse.

In a speech in Birmingham today, the Prime Minister sought to change the narrative, promising that “better days are ahead”.

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He said: “Borrowing will drive long-term growth. Tax rises will prevent austerity and rebuild public services. 

“We choose to protect working people. We choose to get the NHS back on its feet. 

“We choose to fix the foundations, reject decline and rebuild our country with investment.”

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Prime Minister Sir Keir Starmer giving a speech during an event in the West Midlands. Credit: Darren Staples/PA WirePrime Minister Sir Keir Starmer giving a speech during an event in the West Midlands. Credit: Darren Staples/PA Wire
Prime Minister Sir Keir Starmer giving a speech during an event in the West Midlands. Credit: Darren Staples/PA Wire | Darren Staples/PA Wire

Ms Reeves has said she will change the way debt is calculated in the fiscal rules to free up billions of pounds for capital infrastructure.

During the speech, Sir Keir revealed the Chancellor will announce £240 million in funding for services to get people back into work.

He said: “Rebuilding Britain and delivering growth will take the skills and effort of all of us.

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“That’s why this Budget will also get Britain working. It will pave the way for reforms that tackle the root causes for economic inactivity and make sure that those who can work do work.”

And the Prime Minister hit out at the critics of tax rises and public spending cuts ahead of the Budget.

Sir Keir said: “If people want to criticise the path we choose – that’s their prerogative. But let them then spell out a different direction.

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“If they think the state has grown too big let them tell working people which public services they would cut.

“If they think tax rises are unfair let them tell working people which taxes they’d raise instead.

“If they don’t see our long-term investment in infrastructure as necessary let them explain to working people how they would grow the economy for them.

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“And if they think taxes are too high but they don’t want to cut public spending let them tell working people why the lessons of Liz Truss no longer apply.

“Because I have said it before and I will say it again, the time is long overdue for politicians in this country, to level with you, honestly about the trade-offs this country faces.”

The Budget comes amid plummeting opinion poll ratings for the Prime Minister and the Chancellor.

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Ms Reeves’ approval rating has dropped by 32 points since the election, while Sir Keir’s has fallen by 50 points.

More In Common’s executive director, Luke Tryl, said: “The gap between the Budget being announced and the Budget taking place has allowed a lot of worry.”

Despite inflation dropping below the Bank of England’s 2 per cent target, just 10 per cent of people think the economy is in a good state.

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Mr Tryl explained that “if Labour wanted to land a narrative that it doesn’t look very positive ahead [of the Budget] then they have”, although he said this could cause issues going forward.

He also said there is a “dangerous expectation gap”, with 56 per cent of people believing Ms Reeves can avoid tax rises and spending cuts - despite government warnings of the £22bn financial black hole.

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