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Sir Keir Starmer has hinted at tax rises in the government’s first budget warning it is “going to be painful”.
In his first keynote speech from Downing Street, Sir Keir said he will “make big asks” of people in Britain, warning they will have to accept “short term pain for long term good”.
The prime minister said those with the “broadest shoulders” will carry the heaviest burden insisting taxes on “working people” including national insurance, VAT and income tax will not be increased in the 30 October budget.
He claimed things are “worse than we ever imagined”and suggested the riots showed “the cracks in our society after 14 years of populism and failure”.
On winter fuel payments, the PM admitted removing the measure for pensioners was difficult citing that the government inherited a £22billion black hole in public finances from the Tories.
Reacting to his speech, general secretary of the Unite union Sharon Graham criticised the “bleak vision” Sir Keir delivered in his first keynote speech as prime minister.
Rishi Sunak also hit out at the PM claiming that his keynote speech this morning was an indication of Labour’s plan to “raise taxes”. Laura Trott also accused Labour of “rolling the pitch” to increase taxes, warning “working families are next in line”.
Key Points
- Starmer hints at tax rises and warns October Budget will be ‘painful’
- IFS warns Labour government faces ‘difficult and complex choices'
- Union chief: ‘Bleak vision of Britain is not what we need now’
- Conservatives warn ‘working families are next in line for Labour’s tax hikes'
- Sunak: 'Starmer’s speech clear indication Labour planning to raise taxes’
Starmer defends winter fuel payment cuts amid ‘health emergency’ warning
Sir Keir Starmer has defended stopping all pensioners receiving the winter fuel payment, amid warnings it could create a “public health emergency”.
The prime minister used a speech in Downing Street’s rose garden to claim he “didn’t want to means-test” the payment, but said it was a “choice we had to make” to help “repair the public finances”.
The government’s policy will stop winter fuel payments for people in England and Wales who are not in receipt of Pension Credit or other means-tested benefits.
That policy is expected to reduce the number of pensioners in receipt of the up to £300 payment by 10 million, from 11.4 million to 1.5 million, saving some £1.4 billion this financial year.
Sir Keir said there is a need to be “honest with people about the choices that we face”, adding: “Things will get worse before they get better.”
He said: “I didn’t want to means-test the winter fuel payment, but it was a choice that we had to make, a choice to protect the most vulnerable pensioners while doing what is necessary to repair the public finances.”
Charity Age UK said it “strongly” opposes means-testing the payment because it means “as many as two million pensioners who badly need the money to stay warm this winter will not receive it and will be in serious trouble as a result”.
Told about this warning, Sir Keir said: “So far as the winter fuel allowance is concerned, firstly I would say it’s not a particularly well-designed scheme, frankly – I think everybody would concede that.
“I do think it’s important that we make sure the support is there for those pensioners who need it most, which is why we’re pushing for the Pension Credit to be taken up and looking at other allowances.”
Salma Ouaguira27 August 2024 22:00 1724790603Labour scraps £40m private helicopter service favoured by Rishi Sunak
Labour has reportedly axed the private helicopter service favoured by Rishi Sunak to save the taxpayer £40million.
The “grossly wasteful” contract was scrapped by defence secretary John Healey just weeks after coming into office.
In 2023, Mr Sunak reversed an initial decision to stop leasing the two Augusta Westland helicopters.
Our political correspondent Millie Cooke has the full story:
Labour scraps £40m private helicopter service favoured by Rishi Sunak
Senior ministers set to travel in government-owned aircraft after ‘grossly wasteful’ contract axed
Salma Ouaguira27 August 2024 21:30 1724788803Oasis reunion will give ‘supersonic’ economic boost to UK, say business groups
Oasis’ newly announced tour marks one of the most long-awaited reunions in music – and businesses near the gig venues will be almost as excited as fans, experts say.
The Britpop band, led by brothers Liam and Noel Gallagher, have announced a series of tour dates spanning London, Manchester, Cardiff, Edinburgh and Dublin next summer.
Thomas Pugh, economist at RSM UK, said the tour will “undoubtedly be a phenomenal sellout, which will also cause a spike in demand for accommodation and hospitality in those cities lucky enough to be hosting a gig.
“This potentially presents a very profitable opportunity for the hospitality industry, especially hoteliers.
“For example, Taylor Swift and the Foo Fighters saw hotel prices in Cardiff, which will also host an Oasis gig, rise by up to 500%.”
It comes after Taylor Swift’s Eras tour was cited by some finance experts for boosting restaurants and hotels in the cities where she performed this summer, partly as a result of inbound tourism for the dates.
Research by analysts from Barclays predicted earlier this summer that the pop star could bring a £1 billion boost to the UK.
In full: Starmer warns of ‘really painful’ budget to ‘fix rot’ left by Tories
Sir Keir Starmer has admitted that the country is set to be hit with “a very painful budget” in October as his new Labour government tries to “fix the rot” left by the Tories.
Speaking to a group of 50 voters and supporters in the Downing Street rose garden, the prime minister hinted at more spending cuts and tax rises to come as his party attempts to close a £22 billion black hole they claim to have found in the public finances.
He warned “things are worse than we ever imagined” because of a £22 billion “black hole” in the public finances, claiming to have found out last week that the Tories had borrowed almost £5 billion more than the Office for Budget Responsibility expected.
Our political editor David Maddox has the full story:
Starmer warns of ‘really painful’ budget to ‘fix the rot’ left by Tories
The prime minister defended taking away winter fuel payments from thousands of pensioners as he warned of ‘worse to come’
Salma Ouaguira27 August 2024 20:30 1724785203Starmer says rioters ‘exploited broken prisons system’
Rioters were betting on the broken prisons system, Sir Keir Starmer said, as he claimed those behind the recent unrest following the fatal Southport stabbings “exploited” the capacity crisis.
In July this year, the Labour Government set out legislation to reduce the amount of time inmates must spend in jail before they are automatically released, from 50% of their sentence to 40%, in a bid to manage overcrowding.
The Prime Minister has now claimed the early release scheme was an essential part of the Government’s response to the riots and its ability to prosecute perpetrators of the violence.
Sir Keir added that the decision to release prisoners early was difficult and “goes against the grain of everything I’ve ever done”, referring to his former role as chief prosecutor.
In a speech from Downing Street’s rose garden on Tuesday, he said: “Every day of that disorder, literally every day, we had to check the precise number of prison places and where those places were to make sure we could arrest, charge and prosecute people quickly.
“Not having enough prison places is about as fundamental a failure as you can get and those people throwing rocks, torching cars, making threats, they didn’t just know the system was broken, they were betting on it, gaming it.
“They thought: ‘Ah, they’ll never arrest me and if they do, I won’t be prosecuted, and if I am, I won’t get much of a sentence.’
“They saw the cracks in our society after 14 years of failure and they exploited them. That’s what we’ve inherited. Not just an economic black hole, a societal black hole, and that’s why we have to take action and do things differently.”
Watch in full: Starmer vows Labour will reverse ‘failure’ of Tories
Watch live: Starmer vows Labour will reverse ‘populism and failure’ of Tories
Watch live as Sir Keir Starmer holds a press conference on Tuesday 27 August.
Salma Ouaguira27 August 2024 19:30 1724781603Labour had to check ‘every day’ prison overcrowding numbers
Sir Keir Starmer said in 2011 he did not doubt that the courts could respond to the riots as needed, saying: “This time, to be honest with you, I genuinely didn’t know.
“Every day of that disorder, literally every day, we had to check the precise number of prison places and where those places were to make sure we could arrest, charge and prosecute people quickly.
“Not having enough prison places is about as fundamental a failure as you can get and those people throwing rocks, torching cars, making threats, they didn’t just know the system was broken, they were betting on it, gaming it. They thought ‘Ah, they’ll never arrest me and if they do, I won’t be prosecuted, and if I am, I won’t get much of a sentence’.
“They saw the cracks in our society after 14 years of failure and they exploited them. That’s what we’ve inherited. Not just an economic black hole, a societal black hole and that’s why we have to take action and do things differently.”
Labour to extend vital Household Support Fund as Reeves under pressure
Labour is set to extend a hardship fund for struggling households in England after campaigners call the money a “lifeline” for thousands.
Ministers will announce that the Household Support Fund will be extended for a fifth time, Whitehall officials told the Financial Times, taking the funding beyond its current September 30 cut off date.
The Household Support Fund provides local councils with a share of £500 million over a period of six months. Each authority is free to allocate funds however they feel is best to help struggling households in their area.
Read the full story below:
Labour to extend the Household Support Fund – here’s what you need to know
The Household Support Fund gives local councils more dedicated money for vulnerable households
Salma Ouaguira27 August 2024 18:30 1724778003PM warns ‘things are worse than we ever imagined'
Sir Keir Starmer said “things are worse than we ever imagined”, telling a press conference: “In the first few weeks we discovered a £22 billion black hole in the public finances and before anyone says ‘Oh this is just performative or playing politics’ let’s remember the OBR (Office for Budget Responsibility) did not know about it, they wrote a letter setting that out.
“They didn’t know because the last government hid it and even last Wednesday, just last Wednesday, we found out that thanks to the last government’s recklessness we borrowed almost £5 billion more than the OBR expected in the last three months alone. That’s not performative, that’s fact.”
The Prime Minister went on to say a “mindless minority of thugs” thought they “could get away with causing chaos” during the riots, saying: “Now they’ll learn that crime has consequences, that I won’t tolerate a breakdown in law and order under any circumstances and I will not listen to those who exploit grieving families and disrespect local communities.
“But these riots didn’t happen in a vacuum, they exposed the state of our country, revealed a deeply unhealthy society, the cracks in our foundations laid bare, weakened by a decade of division and decline, infected by a spiral of populism which fed off cycles of failure of the last government.
“Every time they faced a difficult problem they failed to be honest, they offered the snake oil of populism which led to more failure – round and round and round. Stuck in the rut of the politics of performance.”
Salma Ouaguira27 August 2024 18:00 1724776203Conservatives slam Oasis reunion under Labour
Salma Ouaguira27 August 2024 17:30 Newer1 / 7OlderDisclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
