UK PM Keir Starmer paves way for ‘tough decisions’ in Budget

LONDON: British Prime Minister Keir Starmer on Monday paved the way for “tough decisions” on tax rises that are expected in the Labour Party-led government’s first Budget since its landslide general election victory in July.

On Wednesday, Rachel Reeves will become the first UK Chancellor in history to table the Budget statement in the House of Commons and there has been widespread speculation around the expected hike in a range of taxes, such as capital gains and inheritance.

Labour has a manifesto pledge to not raise taxes for “working people”, a terminology that in itself has come under attack with Starmer and his Cabinet repeatedly asked to define the phrase.

“I know some people will recoil when we say we have to take the tough decisions needed to fix the foundations,” said Starmer in a speech in Birmingham.

“Trust in my project to return Britain to the service of working people can only be earned through actions not words: Change must be felt. But every decision we have made. Every decision that we will make in the future will be made with working people in our mind's eye. People who have been working harder and harder for years, just to stand still,” he said.

Addressing the debate around the phrase "working people", the Labour leader admitted there are always exceptions to the rule.

“But I also know that the working people of this country know exactly who they are and that – they are the golden thread that runs through our agenda. Every single one of our national missions is about delivering for them. And we are getting on with the job,” he said.

“These are unprecedented circumstances, but the Budget the Chancellor will deliver on Wednesday, will prevent devastating austerity in our public services and prevent a disastrous path for our public finances,” he added.

The speech was an attempt to mute an outcry around GBP 35 billion of tax rises expected in Wednesday’s Budget statement to meet some of the so-called “black hole” Labour accuses the previous Conservative government of leaving behind. The Tories in turn accused the Starmer-led government of breaking its election promises.

“I will defend our tough decisions all day long. It is the right thing for our country and it is the only way to get the investment that we need,” Starmer countered.