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Sir Keir Starmer said he “rejects the argument” tax rises are required to rebuild public services – as he insisted there will be “no return to austerity” under a Labour government.

The Number 10 hopeful told Sky’s political editor Beth Rigby that he will “properly fund” the UK’s creaking infrastructure – despite very few giveaways in his manifesto.

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The Labour leader has ruled out raising income tax, national insurance and VAT in the policy document – prompting the Institute for Fiscal Studies to warn his flagship promise to deliver “genuine change” is in jeopardy.

It was put to Sir Keir that, given he does not want to raise taxes, he does not have enough money to rebuild public services after years of cuts.

But he said: “I reject that argument. I reject this suggestion that is out there – that all we can hope for with our economy is that we flatline, forever.

“I understand after 14 years why people don’t necessarily believe that we can grow our economy. I do think we can grow our economy. We’ve got serious plans in here.”

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Sir Keir pointed to his pledges to overhaul planning laws to build housing and infrastructure more quickly, establish a publicly owned clean energy company and set up a National Wealth Fund to invest in industry.

He said: “These are serious planks of growth for the country.

“I understand why so far in this campaign, what’s being put to us is ‘are you either going to tax more or spend less?’

“But I’m rejecting that that is the only argument, so this manifesto is a total rejection of that argument. We’re going for growth.”

Pressed if “going for growth” meant austerity, he said: “No, there will not be austerity under a Starmer government.

“This is an election about change. We will properly fund our public services. I believe in our public services. I am totally rejecting the proposition that we cannot do better than we’ve done over the last 14 years.”

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‘I’m running to be PM, not to run the circus’

Pointing to his former job as Director of Public Prosecutions, Sir Keir added: “I ran a public service under austerity. I know the damage that it did. We will not go to austerity under a Labour government.”

Sir Keir was speaking hours after he launched his manifesto with a pledge to “end the political pantomime” and “rebuild Britain”.

The Labour leader is seeking to bring his party back from the political wilderness after 14 years of Conservative governments under five prime ministers – and polls suggest he is on track to do just that.

Asked if he thinks he’s going to win, Sir Keir repeated his cautious mantra that he’s “got to earn every vote” and “polls can’t predict the future”.

But he said he has been preparing for office for some time, so he is ready to “hit the ground running” on day one.

Sir Keir said: “As you would expect, I know the public would expect anybody who wants to be prime minister to be ready to hit the ground running, rolling up his or her sleeves, to be ready to start the work on day one.

“That’s why I’ve ensured that without being complacent, we’ve done the homework to make sure that we can do that the day after the election, and we will start on dentistry, on health, on policing, on education, all of the change that we need.

“That is not about being complacent. It’s about making sure that I can look the public in the eye and say, if you elect a Labour government in to serve you, we will roll up our sleeves and we will start that work on day one.”

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Vietnam legalizes crypto under new digital technology law

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Vietnam legalizes crypto under new digital technology law

Vietnam legalizes crypto under new digital technology law

Vietnam has passed a sweeping digital technology law that legalizes crypto assets and outlines incentives for AI, semiconductors, and infrastructure.

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Brazil ends crypto tax exemption, imposes 17.5% flat rate on gains

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Brazil ends crypto tax exemption, imposes 17.5% flat rate on gains

Brazil ends crypto tax exemption, imposes 17.5% flat rate on gains

Brazil scraps crypto tax exemption for small traders, enforces flat 17.5% rate across all gains, including self-custody and offshore holdings.

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A scrambled G7 agenda as world leaders scramble to de-escalate the Israel-Iran conflict

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A scrambled G7 agenda as world leaders scramble to de-escalate the Israel-Iran conflict

The return on Donald Trump to the G7 was always going to be unpredictable. That it is happening against the backdrop of an escalating conflict in the Middle East makes it even more so.

Expectations had already been low, with the Canadian hosts cautioning against the normal joint communique at the end of the summit, mindful that this group of leaders would struggle to find consensus.

Canadian Prime Minister Mark Carney carefully laid down an agenda that was uncontroversial in a bid to avoid any blow-ups between President Trump and allies, who of late have been divided like never before – be it over tariffs and trade, Russia and Ukraine, or, more recently Israel’s conduct in Gaza.

But discussions around critical minerals and global supply chains will undoubtedly drop down the agenda as leaders convene at a precarious moment. Keir Starmer, on his way over to Canada for a bi-lateral meeting in Ottawa with PM Carney before travelling onto the G7 summit in Kananaskis, underscored the gravity of the situation as he again spoke of de-escalation, while also confirmed that the UK was deploying more British fighter jets to the region amid threats from Tehran that it will attack UK bases if London helps defend Israel against airstrikes.

Canadian Prime Minister Mark Carney is greeted by President Donald Trump as he arrives at the West Wing of the White House, Tuesday, May 6, 2025, in Washington. (AP Photo/Mark Schiefelbein)
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Canadian PM Mark Carney is greeted by President Donald Trump at the White House in May. Pic: AP

Really this is a G7 agenda scrambled as world leaders scramble to de-escalate the worst fighting between Tel Aviv and Tehran in decades. President Trump has for months been urging Israel not to strike Iran as he worked towards a diplomatic deal to halt uranium enrichment. Further talks had been due on Sunday – but are now not expected to go ahead.

All eyes will be on Trump in the coming days, to see if the US – Israel’s closest ally – will call on Israel to rein in its assault. The US has so far not participated in any joint attacks with Tel Aviv, but is moving warships and other military assets to the Middle East.

Sir Keir, who has managed to strike the first trade deal with Trump, will want to leverage his “good relationship” with the US leader at the G7 to press for de-escalation in the Middle East, while he also hopes to use the summit to further discuss the further the interests of Ukraine with Trump and raise again the prospects of Russian sanctions.

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“We’ve got President Zelenskyy coming so that provides a good opportunity for us to discuss again as a group,” the PM told me on the flight over to Canada. “My long-standing view is, we need to get Russia to the table for an unconditional ceasefire. That’s not been really straightforward. But we do need to be clear about what we need to get to the table and that if that doesn’t happen, sanctions will undoubtedly be part of the discussion at the G7.”

Prime Minister Sir Keir Starmer (right) is greeted by Prime Minister of Canada Mark Carney as he arrives at Rideau Cottage in Ottawa
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Prime Minister Sir Keir Starmer (R) is greeted by Mark Carney as he arrives in Ottawa ahead of the G7

But that the leaders are not planning for a joint communique – a document outlining what the leaders have agreed – tells you a lot. When they last gathered with Trump in Canada for the G7 back in 2018, the US president rather spectacularly fell out with Justin Trudeau when the former Canadian president threatened to retaliate against US tariffs and refused to sign the G7 agreement.

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Since then, Trump has spoken of his desire to turn Canada into the 51st state of the US, a suggestion that helped catapult the Liberal Party beyond their Conservative rivals and back into power in the recent Canadian elections, as Mark Carney stood on a ticket of confronting Trump’s aggression.

With so much disagreement between the US and allies, it is hard to see where progress might be made over the next couple of days. But what these leaders will agree on is the need to take down the temperature in the Middle East and for all the unpredictability around these relationships, what is certain is a sense of urgency around Iran and Israel that could find these increasingly disparate allies on common ground.

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