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Sir Keir Starmer will promise a “better bargain” for the British public in a major speech that will focus on the need for economic growth over spending.

The Labour leader will warn that his government would not be able to “turn on the spending taps” and will instead have to be “ruthless” when it comes to fiscal responsibility.

In a major speech hosted by the Resolution Foundation thinktank, Sir Keir will say the current state of the public finances will place “huge constraints” on what Labour can spend on public services.

“Growth will have to become Labour’s obsession if we are to turn around the economy,” he will say.

It follows a report by the thinktank which found that the UK has experienced 15 years of relative decline, with productivity growth at half the rate seen across other advanced economies, while wages have flatlined, costing the average worker £10,700 a year in lost pay growth.

The Resolution Foundation report also found that living standards of the lowest-income households in the UK are £4,300 lower than their French counterparts.

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Starmer accused of ‘holding the Tory party’s pint’

Sir Keir will make his speech after an article he wrote in the Daily Telegraph generated controversy for its praise of former Tory prime minister Margaret Thatcher.

The Labour leader said the late Baroness Thatcher brought about “meaningful change” in the UK as she “sought to drag Britain out of its stupor by setting loose our natural entrepreneurialism” during her 11 years in Downing Street.

The remarks have angered some MPs on the left of his party, with one telling Sky News they believed it meant Sir Keir “intends to govern without any real political project of his own”.

“It means meaningful or transformational change is well and truly off the table,” they added.

“He is in effect holding the Tory party’s pint, whilst they get themselves ready to run the country again.”

Sir Keir later sought to clarify his comments, telling the BBC his intention was to compare the “drift” of recent years with the “sense of mission” embodied by previous leaders – including Labour prime ministers Clement Attlee and Sir Tony Blair.

“It doesn’t mean I agree with what she [Thatcher] did, but I don’t think anybody could suggest she didn’t have a driving sense of purpose,” he explained.

The Prime Minister Margaret Thatcher speaking at the 1980 Conservative Party Conference in Brighton.
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The then prime minister, Margaret Thatcher, in 1980


Economy ‘biggest issue’ at next election

Speaking to Sky News this morning, Labour’s national campaign coordinator, Pat McFadden, said the economy was going to be the “biggest issue” at the next election “because we’ve got taxes at a very high level”.

“We’ve had growth at a low level. We’ve had stagnating incomes. Public services are creaking. When you add it all up, it’s been a bad bargain for the British people,” he said.

Asked about his views on Baroness Thatcher, Mr McFadden said the word “admire” was “not the word I’d use”.

“I recognise she won [the general election] three times,” he said.

“I would hope if we were going to win elections, we would make change with the same determination but not in the same direction,” he added.

Pressed on what word he would use instead, Mr McFadden added: “She was successful electorally.”

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Shadow Cabinet Minister Pat McFadden defends Starmer’s comments about Thatcher

Starmer to follow Thatcher praise with Churchill reference

In his speech today, Sir Keir will argue that “Britain is going backwards” under Rishi Sunak’s leadership and that the “political consensus” that hard work will be rewarded has “become nothing short of a lie for millions of people” under the Conservatives.

“Taxes are higher than at any time since the war, none of which was true in 2010,” he will say.

And following his praise for Baroness Thatcher, Sir Keir will also put a twist on a famous quote from another Tory prime minister – Winston Churchill.

He is expected to say: “Never before has a British government asked its people to pay so much, for so little.”

“Inflation, debt, taxes; we face huge constraints,” he will add.

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Sir Keir is also expected to say: “This parliament is on track to be the first in modern history where living standards in this country have actually contracted.

“Household income growth is down by 3.1% and Britain is worse off.”

Conservative Party chairman Richard Holden said in response: “The largest ‘constraint’ to growing the economy would be Labour’s £28bn a year borrowing plan, which independent economists warn would see inflation, interest rates and people’s taxes rise.

“It is the same old short-term approach from Labour – borrow more and the British people will pay more.”

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Courts system in a ‘calamitous’ state, warns ex-judge who recommended jury cuts

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Courts system in a 'calamitous' state, warns ex-judge who recommended jury cuts

Sir Brian Leveson, who conducted the independent review of the courts system that guided the government’s decision to reduce on jury trials, has suggested there is no alternative.

Speaking to Sky’s Politics Hub programme, the retired judge argued that by restricting jury trials, Justice Secretary David Lammy is “aiming to try to solve the systemic problems” in courts.

He told Sky presenter Ali Fortescue: “I am a great believer in trial by jury, but trials with a jury take very much longer than trials conducted otherwise than with 12 people who are utterly unused to criminal procedure and criminal evidence.

“So my concern is that we need to get through cases quicker.”

He said that it was likely a “20% time saving would result” from the move, although he thinks that “a great deal more” would be saved.

Asked about the criticism today of the decision, Sir Brian said: “I’m gaining no pleasure from it, but what I say to all of them is ‘If not this, then what?’ How do we reduce the backlog so the victims and witnesses get their day in court within a reasonable time?”

He argued that “we should use our resources proportionately to the gravity of the offending”, and “there are some cases which, to my mind, do not merit or require a trial by jury”.

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Sir Brian said that some jurors he had spoken to said it was “worthwhile”. But he added: “They’ve given up two weeks of their life, sometimes without any pay except the small remuneration that they receive from the state doing jury service, and they’ve been trying cases which shouldn’t merit their attention”.

Asked if he would want a trial by jury if he had been wrongly accused of theft, Sir Brian said: “If I’d been wrongly accused of theft, I’d be perfectly happy for a judge to decide I’d been wrongly accused of theft.”

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Jury trials to be scrapped

More broadly, he said: “I don’t see how you’re going to bring down the backlog without more money, more sitting days, greater efficiency, and speedier trials…

“There aren’t the judges, there aren’t the court staff, more significantly there aren’t the advocates.”

He said that the justice system had never been in such a “calamitous” state.

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‘The reforms are about fairness’

Courts minister Sarah Sackman also defended the decision on Tuesday’s Politics Hub. She acknowledged that jury trials were “a success story”, and “a cornerstone of British justice and will remain so after today’s plans”.

But she added: “What’s not such a success story is the fact that we inherited record and rising backlogs in our courts.

“Today the number starts at 80,000 cases, and it’s on the rise – due to hit 100,000 by 2028.”

That leaves victims “waiting for their case to be heard”. She argued that the measures announced on Tuesday were “a set of reforms that will restore confidence in our justice system, get those delays down, and indeed preserve jury trials for the most serious cases”.

Ms Sackman added that “right now in our system, 90% of cases [are] being heard without a jury in our magistrates”, which is “fair, robust justice”.

“Part of fairness is about the swiftness we need to deliver swifter justice for victims,” she said.

“What’s not fair is a victim of crime being told today that she needs to wait until 2029, 2030 for her day in court.”

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‘Swifter justice for victims’

The minister gave an example of what will change, saying: “Supposing a defendant is accused of stealing a bottle of whisky.

“Is it right that we allow the defendant to insist on a slower, more expensive jury trial in the same queue as the victim of rape, making her wait and in some cases, justice not being served?

“That’s the choice that we’ve made today.”

But the minister refused to say how much this would reduce the backlog by.

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Inquiry into Crown Estate launched after controversy over Andrew’s Royal Lodge residence

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Inquiry into Crown Estate launched after controversy over Andrew's Royal Lodge residence

An influential parliamentary committee is launching an inquiry into the Crown Estate – the vast range of properties and land owned by the monarchy.

The move by the Public Accounts Committee follows scrutiny of Andrew Mountbatten-Windsor’s living arrangements at Royal Lodge on the Windsor Estate, and the revelation he pays a peppercorn rent.

The Crown Estate and the Treasury were asked to explain and justify his lease agreement to the committee after the series of scandals over Andrew’s controversial links to Jeffrey Epstein which saw him step down from royal duties and lose his royal style and titles.

The former prince has consistently denied allegations of sexual abuse and his accuser, Virginia Giuffre, took her own life this year.

Public Accounts Committee chair Sir Geoffrey Clifton-Brown thanked the Treasury and Crown Estate for responding to questions and said the committee’s “overall” mission was to “secure value for money for the taxpayer”.

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He said: “Having reflected on what we have received, the information provided clearly forms the beginnings of a basis for an inquiry.”

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The inquiry into the Crown Estate will start in the new year and will consider leases given to members of the royal family, as well as wider work based on the estate’s annual accounts.

Part of the responses given to the committee confirm Andrew won’t receive any compensation for leaving Royal Lodge due to the maintenance and repairs the property needs.

It has also been revealed that the Prince and Princess of Wales have a 20-year lease on their new home, Forest Lodge, also situated within Windsor Great Park.

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Government delays Chinese ‘super embassy’ decision

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Government delays Chinese 'super embassy' decision

The UK government has again delayed its decision over whether to approve a Chinese “super embassy” in London until January.

A decision over the controversial plan close to the Tower of London will now take place on 20 January, instead of 10 December, a letter from the planning inspectorate seen by Sky News says.

Despite multiple delays, Sky News understands the government is expected to approve the plans for what would be Europe’s largest embassy, with both MI5 and MI6 said to have given their blessing to the decision.

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Housing Secretary Steve Reed has said he needs more time to consider new representations from the Foreign Office and Home Office.

A letter from the home and foreign secretaries to the planning inspectorate, published with the latest delay letter, said their national security concerns have been addressed by the Chinese government committing to ensure all its diplomatic premises in London, excluding the ambassador’s house, are consolidated on to the new embassy site.

The new letter sent to ministers and “interested parties”, including the Inter Parliamentary Alliance on China (IPAC) – which has warned against approving the embassy – said the government aims “to issue the decision as quickly as possible” on or before 20 January.

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Luke de Pulford, executive director of IPAC, told Sky News: “This is the third delay, and entirely of the government’s own making.

“Residents and dissidents have endured months of dithering as the government tries to choose between UK national security and upsetting Beijing.”

The basements in most of the buildings have been greyed out 'for security reasons'. Pic: David Chipperfield Architects
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The basements in most of the buildings have been greyed out ‘for security reasons’. Pic: David Chipperfield Architects

Three delays by Labour government

Mr Reed became housing secretary in September and had already delayed the decision once from October, as he said he had not had enough time to look at the details.

A decision had also been delayed earlier this year by the former housing secretary Angela Rayner, months after the Chinese re-submitted their planning application two weeks after Labour won the general election.

That was after Tower Hamlets Council rejected the application in 2022 and the Conservative government said it would not call it in for ministers to decide.

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There have been multiple protests against the embassy's development. Pic: PA
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There have been multiple protests against the embassy’s development. Pic: PA

National security concerns

There have been large-scale protests against the embassy – on the site of the former Royal Mint – over concerns it will be used as a Chinese spy hub for Europe.

Hong Kong dissidents who have fled to the UK have expressed fears that rooms redacted “for security reasons” in submitted plans might be used to detain them.

The latest delay comes less than 24 hours after Sir Keir Starmer warned China poses “real national security threats to the United Kingdom” and said being tough on national security will enable the UK to pursue economic opportunities with Beijing.

He said UK government policy towards China cannot continue to blow “hot and cold” and said his government will focus on the relationship with Beijing.

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Starmer on China: ‘It’s time for a serious approach’

Chinese embassy says UK interfering in its affairs

A Chinese embassy spokesman in London said China “firmly opposes the erroneous remarks” and accused Sir Keir of making “groundless accusations against China” and interfering in China’s internal affairs.

“Facts have fully demonstrated that China has always been a builder of world peace, a contributor to global development, and a defender of the international order,” he said.

“On issues of peace and security, China has the best track record among major countries. China’s development poses no threat to any country, but instead brings opportunities for common development to all.”

He said the UK should “adjust its mindset, adopt a rational and friendly approach towards China’s development”.

Last month, MI5 warned MPs, peers and parliamentary staff about the risk from Chinese spies after identifying two LinkedIn profiles it said are being used by the Chinese Ministry of State Security to act as “civilian recruitment headhunters”.

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