British PM warns of "painful" budget
In a speech delivered from the Downing Street garden, Prime Minister Sir Keir Starmer has cautioned that the upcoming October budget will be "painful," Kazinform News Agency correspondent reports.
He emphasised the necessity for short-term sacrifices to achieve long-term benefits, signalling a shift in the government's approach to addressing the economic challenges inherited from the previous Conservative administration.
Starmer accused the Conservatives of leaving behind not just an "economic black hole" but also a "societal black hole," highlighting the deep-rooted issues plaguing the nation. He stated that those with the "broadest shoulders" would bear the heavier burden, though he stopped short of detailing the specific measures to be included in the Budget.
Since taking office in July, the Labour government has repeatedly stressed the severity of the situation it faces, attributing much of the nation's woes to the Tories' failure to act effectively during their time in power. Starmer claimed that the public finances are in a far worse state than anticipated, pointing to a £22 billion shortfall - an accusation the Conservatives have vehemently denied.
Starmer also addressed the recent unrest, stating that the riots exposed "cracks in society" exacerbated by 14 years of Conservative rule. He promised "tough action" to restore the country's foundations, but reaffirmed his campaign pledge not to raise National Insurance, income tax, or VAT.
Chancellor Rachel Reeves has echoed these assurances but hinted that some taxes may rise. She has not ruled out increases in inheritance tax, capital gains tax, or reforms to pension tax relief. Additionally, the government has already announced cuts to social care payments and the winter fuel allowance, sparking concern among Labour backbenchers.
The Prime Minister's speech has been met with mixed reactions. His remarks have drawn criticism from Conservative leader and former Prime Minister Rishi Sunak, who argued that the speech revealed Labour's true intention to raise taxes.
Conservative Party chairman Richard Fuller dismissed it as "performative," accusing Starmer of failing to keep his campaign promises and undermining public services.
Meanwhile, Scottish National Party Finance Secretary Shona Robison criticised Labour, stating, "While the legacy of the Tory government is clear, Labour must accept at least some culpability for the mess that the UK is now in."
Green Party co-leader Carla Denyer condemned the government's refusal to tax the super-rich, arguing that it perpetuates the status quo.
Starmer's address was attended by around 50 members of the public, including small business owners and public servants, who had been invited based on their interactions with the Prime Minister during the election campaign.
As the Labour government prepares to unveil its first Budget, the nation braces for what promises to be a challenging period of economic adjustment, with the Prime Minister urging patience and resilience in the face of difficult but necessary decisions.
