Keir Starmer cautioned about the upcoming Budget decisions in the face of a challenging economic environment. During a private meeting with Labour MPs, the Prime Minister highlighted the severe consequences of Tory austerity and a flawed Brexit deal, stating the situation was even worse than anticipated. However, he assured that a Labour government would prioritize Labour values, safeguarding the NHS and enhancing living standards for struggling individuals.
Meanwhile, Chancellor Rachel Reeves is grappling with a significant £20-30 billion shortfall in public finances while aiming to adhere to spending guidelines. Reeves is set to present the Budget on November 26 and is expected to give a crucial economic address this week.
Recent speculation arose following Starmer’s reluctance to reaffirm Labour’s commitment to shielding workers from tax, VAT, and national insurance hikes. This has led to conjecture that Reeves might increase income tax in the Budget, potentially contradicting the party’s election promises.
In an address to the Parliamentary Labour Party (PLP), Starmer emphasized that the Budget would reflect Labour values, focusing on protecting public services like the NHS, reducing national debt, and improving living standards. He acknowledged the challenging economic circumstances despite previous strong economic growth in the G7 earlier this year.
Starmer criticized the Tories for their economic track record, cautioning against trusting them in the future. He also criticized Nigel Farage’s Reform UK, warning that proposed cuts by the party could harm the NHS and highlighting conflicting priorities, such as reducing the minimum wage while offering benefits to billionaires.
Senior Labour MP Dame Emily Thornberry stressed the importance of unity and discipline among Labour MPs ahead of the Budget. She emphasized the significance of sharing ideas with Reeves privately to enhance the Budget’s content effectively.
This content has been rewritten for accuracy, readability, and search engine optimization.