Prime Minister Sir Keir Starmer signals tax rises coming as he warns of ‘painful’ budget
The October budget will be “painful”, Sir Keir Starmer has said, giving the biggest hint yet of tax rises.
Speaking from Downing Street, the prime minister said: “I will be honest with you, there is a budget coming in October and it’s going to be painful.”
He added: “Just as when I responded to the riots, I’ll have to turn to the country and make big asks of you to accept short-term pain for long-term good. The difficult trade-off for the genuine solution.”
Politics latest: Reaction as Starmer gives major speech
The budget is set to be held on 30 October.
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‘Things will get worse before they get better’
Sir Keir said “those with the broadest shoulders should bear the heavier burden” and “those who made the mess should have to do their bit to clean it up”.
The first group he linked to the scrapping of the non-dom tax status, and the latter to water companies paying fines.
The Conservatives have accused the prime minister of a “betrayal” of people’s trust after he promised not to raise taxes.
Tory leader and former prime minister Rishi Sunak posted on social media: “Keir Starmer’s speech today was the clearest indication of what Labour has been planning to do all along – raise your taxes.”
The prime minister referenced the “£22bn black hole” in the nation’s finances, that he said the Office for Budget Responsibility did not know about – as he took aim at the last government.
“I said change would not happen overnight,” Sir Keir said. “When there is a deep rot at the heart of a structure, you can’t just cover it up… you have to overhaul the entire thing, tackle it at root. Even if it’s hard work or takes more time.”
Read more:
Which taxes could Labour rise
Government borrowing highest since pandemic
Speaking about riots towards the end of July into the start of this month following the Southport stabbing attack which left three young girls dead – the prime minister hit out at a “minority of thugs that thought they could get away with causing chaos”.
Asked by Sky News political editor Beth Rigby which specific tax rises are being considered, Sir Keir reiterated that taxes on “working people” – like income tax, VAT and national insurance – will not go up.
He added: “We have to get away from this idea that the only levers that can be pulled are more taxes, or more spending.
“Our number one mission is to grow the economy.”
The prime minister was speaking from the rose garden at Downing Street – previously used by Boris Johnson’s adviser Dominic Cummings after he broke COVID lockdown rules, and also where gatherings took place during partygate.
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Dominic Cummings in the Downing Street rose garden in 2020. Pic: PA
This appeared to be a deliberate choice, as Sir Keir said: “This is a government for you, a garden and a building that were once used for lockdown parties.
“Remember the pictures? Just over there? With the wine and the food. Well, this garden and this building are now back in your service.”
Sir Keir has repeatedly blamed the previous government and said it is influencing his decision-making.
This includes the means testing of the winter fuel payments for pensioners.
‘Betrayal of people’s trust
The government’s claims of a £22bn “black hole” left by the Tories have been questioned following substantial pay awards to unions – including to both junior doctors and train drivers.
Sir Keir said he “didn’t want to means test the winter fuel payment”, but it was a choice that needed to be made to “protect the most vulnerable pensioners”.
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Laura Trott, the Conservatives’ shadow chief secretary to the Treasury, said: “The government are no longer promising to protect working people from their incoming tax raid because just like pensioners, working families are next in line for Labour’s tax hikes.
“After promising over 50 times in the election not to raise taxes on working people Labour are now rolling the pitch to break even more promises.
“The chancellor is entitled to raise taxes to pay for her expensive choices and above inflation pay rises demanded by her union paymasters, but she should have had the courage to be honest from the start.
“This a betrayal of people’s trust and we will hold them to account for their actions.”
Politics
Wes Streeting ‘crossed the line’ by opposing assisted dying in public, says Labour peer Harriet Harman
Wes Streeting “crossed the line” by opposing assisted dying in public and the argument shouldn’t “come down to resources”, a Labour peer has said.
Speaking on Sky News’ Electoral Dysfunction podcast, Baroness Harriet Harman criticised the health secretary for revealing how he is going to vote on the matter when it comes before parliament later this month.
MPs are being given a free vote, meaning they can side with their conscience and not party lines, so the government is supposed to be staying neutral.
But Mr Streeting has made clear he will vote against legalising assisted dying, citing concerns end-of-life care is not good enough for people to make an informed choice, and that some could feel pressured into the decision to save the NHS money.
He has also ordered a review into the potential costs of changing the law, warning it could come at the expense of other NHS services if implemented.
Baroness Harman said Mr Streeting has “crossed the line in two ways”.
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“He should not have said how he was going to vote, because that breaches neutrality and sends a signal,” she said.
“And secondly… he’s said the problem is that it will cost money to bring in an assisted dying measure, and therefore he will have to cut other services.
“But paradoxically, he also said it would be a slippery slope because people will be forced to bring about their own death in order to save the NHS money. Well, it can’t be doing both things.
“It can’t be both costing the NHS money and saving the NHS money.”
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Review into assisted dying costs
Baroness Harman said the argument “should not come down to resources” as it is a “huge moral issue” affecting “only a tiny number of people”.
She added that people should not mistake Mr Streeting for being “a kind of proxy for Keir Starmer”.
“The government is genuinely neutral and all of those backbenchers, they can vote whichever way they want,” she added.
Read more on this story:
‘Fix care before assisted dying legislation’
Why assisted dying is controversial – and where it’s already legal
Prime Minister Sir Keir Starmer has previously expressed support for assisted dying, but it is not clear how he intends to vote on the issue or if he will make his decision public ahead of time.
The cabinet has varying views on the topic, with the likes of Justice Secretary Shabana Mahmood siding with Mr Streeting in her opposition but Energy Secretary Ed Miliband being for it.
Energy Security and Net Zero Secretary Ed Miliband is said to support the bill. Pic: Reuters
Justice Secretary Shabana Mahmood has concerns. Pic: Reuters
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The Terminally Ill Adults (End of Life) Bill is being championed by Labour backbencher Kim Leadbeater, who wants to give people with six months left to live the choice to end their lives.
Under her proposals, two independent doctors must confirm a patient is eligible for assisted dying and a High Court judge must give their approval.
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Labour MP Kim Leadbeater discusses End of Life Bill
The bill will also include punishments of up to 14 years in prison for those who break the law, including coercing someone into ending their own life.
MPs will debate and vote on the legislation on 29 November, in what will be the first Commons vote on assisted dying since 2015, when the proposal was defeated.
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