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Sir Keir Starmer has attacked the budget as “the last desperate act of a party that has failed” as he branded Jeremy Hunt and Rishi Sunak “the Chuckle Brothers of decline”.

The Labour leader criticised the chancellor for presiding over a recession and the highest tax burden in 70 years – and accused Mr Hunt of using the budget to “give with one hand and take even more with the other”.

The chancellor announced a 2p cut to national insurance and abolished the current tax system for non-doms, which has been a Labour policy for some time.

Sir Keir called the move, which is expected to raise £2.7bn a year, a “short-term, cynical political gimmick” – adding there was not a “more obvious example of a government that is totally bereft of ideas”.

The Labour leader said Mr Hunt was a chancellor who “breezes into this chamber in a recession and tells the working people of this country that everything’s on track”.

Budget live: No rabbit out of the hat on income tax from chancellor

“Crisis? What crisis? Or as the captain of the Titanic and the former prime minister herself might have said, iceberg? What iceberg?” he joked.

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“Smiling as the ship goes down, the Chuckle Brothers of decline, dreaming of Santa Monica or maybe just a quiet life in Surrey not having to self-fund his election.”

Sir Keir said Britain deserved better than a “Rishi recession” and claimed the Tories had “maxed out the nation’s credit card”.

And calling for the government to confirm a May general election, he added: “It’s time to break the habit of 14 years – stop the dithering.”

Mr Hunt unveiled his budget – expected to be the last before the general election later this year – after speculation in the media pointed towards a possible cut in income tax to woo voters.

But the chancellor resisted calls from Tory MPs for income tax to be cut and instead stuck to reducing national insurance further from 10% to 8%.

Mr Hunt said that, combined with the reduction in national insurance in the autumn statement last year, the average worker would be £900 better off.

In his statement responding to the budget, Sir Keir said his party would support the cuts to national insurance because it had “campaigned to lower the tax burden on working people for the whole parliament”.

But he accused Mr Sunak of breaking a promise he made when he was chancellor that the basic rate of income tax would be cut from 20 to 19p in 2024.

Elsewhere in his budget, the chancellor earmarked almost £6bn for the NHS with artificial intelligence set to be used to “cut form-filling for doctors” in a digitisation drive – although Labour pointed out that Mr Hunt promised to make the NHS paperless by 2018 when he was health secretary.

Other headline measures include extending the 5p cut to fuel duty for another 12 months and maintaining the price of beer, wine and spirits until February 2025.

The High Income Child Benefit Charge threshold will also increase from £50,000 to £60,000 while the higher capital gains tax rate on property will fall from 28% to 24%.

There were signs of some discontent on the Tory benches after the Scottish Conservatives said the extension of the windfall tax on oil and gas was “deeply disappointing”.

Andrew Bowie, a minister in the Department for Energy and Net Zero, said he would work with Scottish Tory leader Douglas Ross in response to the extension of the energy profits levy, which charges oil and gas companies an extra 35% tax on the money they make in the UK.

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Another tantrum from the Labour backbenches is inevitable

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Rachel Reeves hints at tax rises in autumn budget after welfare bill U-turn

In common with many parents across the country, here’s a conversation that I have with my young daughter on a semi-regular basis (bear with me, this will take on some political relevance eventually).

Me: “So it’s 15 minutes until your bedtime, you can either have a little bit of TV or do a jigsaw, not both.”

Daughter: “Ummmm, I want to watch TV.”

Me: “That’s fine, but it’s bed after that, you can’t do a jigsaw as well.”

Fast-forward 15 minutes.

Me: “Right, TV off now please, bedtime.”

(Pause)

Daughter: “I want to do a jigsaw.”

Now replace me with the government, the TV and jigsaw options with axing welfare cuts and scrapping the two-child cap, and my daughter with rebellious backbenchers.

Politics latest: Former Labour leader calls for wealth tax on assets above £10m

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Rachel Reeves’s fiscal dilemma

That is the tension currently present between Downing Street and Labour MPs. And my initial ultimatum is the messaging being pumped out from the government this weekend.

In essence: you’ve had your welfare U-turn, so there’s no money left for the two-child cap to go as well.

As an aside – and before my inbox fills with angry emails lambasting me for using such a crude metaphor for policies that fundamentally alter the lives of some of the most vulnerable in society – yes, I hear you, and that’s part of my point.

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Welfare U-turn ‘has come at cost’

For many in Labour, this approach feels like the lives of their constituents are being used in a childish game of horse-trading.

So what can be done?

Well, the government could change the rules.

Altering the fiscal rules is – and will likely remain – an extremely unlikely solution. But as it happens, one of Labour’s proverbial grandparents has just popped round with a different suggestion.

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Welfare: ‘Didn’t get process right’ – PM

A wealth tax, Lord Neil Kinnock says, is the necessary outcome of the economic restrictions the party has placed on itself.

Ever the Labour storyteller, Lord Kinnock believes this would allow the government to craft a more compelling narrative about whose side this administration is on.

That could be valuable, given one of the big gripes from many backbench critics is that they still don’t really understand what this prime minister stands for – and by extension, what all these “difficult decisions” are in aid of.

The downside is whether it will actually raise much money.

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Is Corbyn an existential risk to Labour?

The super-rich may have lots of assets to take a slice from, but they also have expensive lawyers ready to find novel ways to keep their client’s cash away from the prying eyes of the state.

Or, of course, they could just leave – as many are doing already.

In the short term, the future is a bit easier to predict.

If Downing Street is indeed now saying there is no money to scrap the two-child cap (after heavy briefing in the opposite direction just weeks ago), an almighty tantrum from the backbenches is inevitable.

And as every parent knows, the more you give in, the harder it becomes to hold the line.

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UK restores diplomatic ties with Syria

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UK restores diplomatic ties with Syria

The UK has re-established diplomatic ties with Syria, David Lammy has said, as he made the first visit to the country by a British minister for 14 years.

The foreign secretary visited Damascus and met with interim president Ahmed al Sharaa, also the leader of the rebel group Hayat Tahrir al-Sham (HTS), and foreign minister Asaad al Shaibani.

It marks the latest diplomatic move since Bashar al Assad’s regime was toppled by rebel groups led by HTS in December.

In a statement, Mr Lammy said a “stable Syria is in the UK’s interests” and added: “I’ve seen first-hand the remarkable progress Syrians have made in rebuilding their lives and their country.

“After over a decade of conflict, there is renewed hope for the Syrian people.

“The UK is re-establishing diplomatic relations because it is in our interests to support the new government to deliver their commitment to build a stable, more secure and prosperous future for all Syrians.”

Foreign Secretary David Lammy shakes hands with Syrian interim president Ahmed al-Sharaa in Damascus. Pic: X / @DavidLammy
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Foreign Secretary David Lammy with Syria’s interim president Ahmed al Sharaa in Damascus. Pic: X / @DavidLammy

The Foreign, Commonwealth and Development Office has also announced a £94.5m support package for urgent humanitarian aid and to support the country’s long-term recovery, after a number of British sanctions against the country were lifted in April.

While HTS is still classified as a proscribed terror group, Sir Keir Starmer said last year that it could be removed from the list.

The Syrian president’s office also said on Saturday that the president and Mr Lammy discussed co-operation, as well as the latest developments in the Middle East.

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Since Assad fled Syria in December, a transitional government headed by Mr al Sharaa was announced in March and a number of western countries have restored ties.

In May, US President Donald Trump said the United States would lift long-standing sanctions on Syria and normalise relations during a speech at the US-Saudi investment conference.

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From May: Trump says US will end sanctions for Syria

He said he wanted to give the country “a chance at peace” and added: “There is a new government that will hopefully succeed.

“I say good luck, Syria. Show us something special.”

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Secret Service seizes $400M in crypto, cold wallet among world’s largest

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Secret Service seizes 0M in crypto, cold wallet among world’s largest

Secret Service seizes 0M in crypto, cold wallet among world’s largest

Secret Service quietly amasses one of the world’s largest crypto cold wallets with $400 million seized, exposing scams through blockchain sleuthing and VPN missteps.

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