‘Child poverty will increase for first time under Labour and it’s paving way for Reform’, Corbyn warns Starmer
Child poverty is set to increase under a Labour government for the first time in history and an “alternative path” is needed to stop the rise of Reform UK, Sir Keir Starmer has been warned.
A joint statement signed by former Labour leader Jeremy Corbyn and other cross-party MPs calls for a wealth tax on those with assets over £10m “so we can rebuild our schools and hospitals”.
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The letter, in response to Rachel Reeves’s spring statement, says the chancellor has made a “choice” to push more disabled people and children into poverty by announcing departmental spending cuts while increasing money invested into defence.
“This isn’t about scarcity, it’s about priorities”, it said, adding: “This is set to be the first Labour government in history under which child poverty increases.
“Labour’s failure has paved the way for Reform. We need an alternative path.
“Parroting the rhetoric of Reform UK on migrants, minorities and Muslims just endorses their scapegoating and makes society worse for us all.”
As well as Mr Corbyn, who is now an independent MP, the statement was signed by suspended Labour MPs Sarah Zultana and Apsana Begum, Green MPs, independents and other figures calling for “progressive politics”.
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Corbyn blasts Labour over ‘austerity’
It comes ahead of the launch of Reform UK’s local election campaign on Friday, with the party hoping to make gains in May after overtaking Labour in multiple polls.
The letter describes the “alternative path” as one where the richest in society and multinational companies face higher taxes, rent controls are brought in, water and energy are nationalised and money is invested “in welfare, not warfare”.
These measures have previously been ruled out by Ms Reeves, but she is coming under pressure following her spring statement on Wednesday.
Spring statement takeaways
The economic update included a £2.2bn increase in defence spending over the next year to help the government reach its goal of spending 2.5% of GDP on defence by 2027.
The chancellor also deepened previously announced welfare cuts alongside further departmental spending reductions to make up for £10bn in lost fiscal headroom since her October budget, caused by poor growth and global instability.
The government’s own impact assessment estimates another 250,000 people – including 50,000 children – could be pushed into relative poverty by 2030 because of the measures.
However Ms Reeves said that assessment did not take into account steps the government was taking to get people back into work. She has also rejected a separate analysis that suggests the average family could be £1,400 a year worse off by the end of the decade.
Labour MPs unhappy
Several Labour MPs have spoken out against the cuts and some have said they will vote against them. However Ms Reeves is believed to have staved off a full-scale rebellion for now, as most trust she is serious about getting the nation’s finances back on track.
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Backlash over welfare cuts
Corbyn brands benefit cuts a ‘disgrace’
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Chancellor defends welfare cuts
The chancellor is determined to stick to her self-imposed fiscal rules, including using tax receipts rather than borrowing to account for day-to-day spending.
However she may come under pressure to change course if global factors like Donald Trump’s trade war eat into her fiscal headroom again by the time of the next budget in October – meaning she would have to raise taxes or announce further spending cuts in order to balance the books.
The Institute for Fiscal Studies has warned tax rises are likely in the autumn as Ms Reeves has left herself vulnerable to forecast changes, speculating that pensioners and the wealthiest could be targeted in the raid.
Earlier this week, a YouGov poll found three quarters of the British public would support tax rises on the very richest over expected cuts to public spending, including a 2% wealth tax on net assets worth more than £10m.
Opinion by: James Strudwick, executive director, Starknet Foundation
The outlook surrounding the use of new technologies has shifted in Washington. Tesla CEO and presidential adviser Elon Musk’s proposition to incorporate blockchain technology into the US Treasury has placed blockchain and its use for state finances at the forefront of the global debate. According to Musk, much of this drive is rooted in the concern over the unsustainability of current government spending. With its immutable ledgers and transparent audit trails, blockchain is waiting in the wind, offering a potential solution to managing vast public finances.
Musk advocates for a unified information system that can track real-time payments, credentials and government resources, spurring a debate within the fintech community about the pros and cons of introducing such a tool at the government level. The idea is compelling, as the description on the blockchain tin effectively promises accountability, traceability and streamlined operations. The shift here, namely to a blockchain-powered government infrastructure, presents several challenges that may prove to be beyond what the new administration has expected thus far.
Blockchain as state appendage
A concern for stakeholders orbiting the blockchain world revolves around the sheer scale of government operations. Every day, the US government handles thousands of transactions across various departments. The feasibility of Musk’s vision is put into question simply as a result of its own complexity. The provable security that blockchain technology must offer while handling millions of daily transactions without buckling under the load to succeed at this scale is enormous.
A proposed solution by Musk is a hybrid model that uses “Validium” zero-knowledge rollups. The speed and efficiency of modern ZK-rollups, which can handle hundreds of millions of transactions daily, have the potential to make sure each citizen’s share of government transactions is intact and verifiable. The technology’s rapidly evolving nature, scaling to handle even higher transaction volumes in the coming years, indicates that this could be achievable.
Unfortunately, this in itself comes with its own hurdles, particularly when integrating public services, which tend to operate in silos.
The human question
The great irony here is that Musk’s declarations of government inefficiency as a reason for the ongoing shakeups could be one of the biggest reasons not to go ahead with the plan. The real obstacle here is not so much technological as it is deeply, irrevocably human. The transition from archaic legacy systems to the more modern infrastructure of blockchain requires not just software updates but an entire reprogramming of the workforce. Government employees embedded in bureaucracy are used to outdated systems, and retraining them will be no small task.
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Moreover, current government databases are a labyrinth of poorly documented, indecipherable data. Extracting and migrating this data to a blockchain infrastructure is itself a task that may require serious investment. For all its elegance, blockchain wasn’t built to contend with such inefficiency. Despite its potential for handling complex, distributed environments, the difficulties present in the system itself could make the transition more complicated than the hassle is worth.
Balancing transparency and confidentiality
Transparency of federal spending is also a factor worth highlighting. The innate strength of blockchain and its much-lauded appeal is its strength. It permits citizens to track how public funds are allocated and spent. Musk’s premise could foster a so-far unseen level of accountability, which makes transactions, every delegation of power and every resource distribution visible to the public in real-time.
The problem is that sensitive government data, classified information or personal identification could be dangerously exposed on a public blockchain. Musk’s response is to try to tether sensitive data to private channels in the blockchain and ensure that only individuals with the appropriate authorization or from specific departments can access confidential information. Theoretically, this addresses the security concern while allowing blockchain’s public verifiability.
Musk’s offer could lead to a more efficient, accountable system. The social drive behind this is the longstanding criticism of wasted spending and resource misallocation. There is also a possibility of strengthening democratic processes by holding public officials more accountable. A decentralized authority has the broader impact of empowering citizens through real-time access.
There is a forward-thinking aspect to the vision. It raises a profound question. Technology could address human governance challenges, but we run the risk of a fundamental shift in how we understand privacy and accountable authority. As we question the nature of governance, it warrants careful consideration of the role of blockchain and what it could ultimately mean for the future of society as a whole.
Opinion by: James Strudwick, executive director, Starknet Foundation.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Sir Keir Starmer has said the government has been preparing “for all eventualities” ahead of Donald Trump announcing global tariffs later on Wednesday.
The US president is set to announce details of fresh tariffs on imports into the US after he said all countries will be targeted in his bid to “rebalance” trade agreements.
Mr Trump is expected to announce 20% tariffs on most US imports on what he has called “Liberation Day”.
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Sir Keir told Prime Minister’s Questions (PMQs): “We’ve been preparing for all eventualities ahead of the confirmation of US tariffs later today.
“Let me be clear with the House: a trade war is in nobody’s interest, and the country deserves, and we will take, a calm, pragmatic approach.
“That is why constructive talks are progressing to agree a wider economic prosperity deal with the US.”
He said the government is working with all industries and sectors in the UK that are likely to be impacted.
Sir Keir Starmer met Donald Trump at the White House in February. Pic: PA
The prime minister added his government “will rule nothing out” as he again hinted at retaliatory tariffs.
However, he said he believes the UK’s interests are “best served by calmly trying to secure a deal”.
On Monday, Sir Keir told Sky News political editor Beth Rigby US-UK trade talks are “well advanced” and “rapid progress” had been made.
However, he admitted it is likely “there will be tariffs” as negotiators had not managed to fend them off in time.
At PMQs, Sir Keir rejected jumping into a trade war with the US, saying: “That cannot be the first response of the United Kingdom.”
The impact of potential retaliatory tariffs from the EU on Northern Ireland was also raised, with DUP MP Gavin Robinson reminding the prime minister not to forget the unique trade situation in Northern Ireland.
He said while exports from Northern Ireland are UK exports, imports to the country could be hit by tariffs imposed by the EU as it shares a border with the European bloc.
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The Belfast East MP asked whether government trade teams are attempting to exempt Northern Ireland from any EU action.
Sir Keir reacted by saying what is needed is to be “calm and pragmatic”.
He added the business secretary had spoken to the Northern Ireland government on Wednesday morning, “because this is a serious issue and we need to work together to resolve the interests of everybody in Northern Ireland”.
Last week, Mr Trump said he was open to carving out deals with countries seeking to avoid US tariffs, but those agreements would be negotiated after 2 April.
He previously said he “may give a lot of countries breaks, but it’s reciprocal”, adding: “We might be even nicer than that.”
Politics
More than 400 Sikh groups call on Starmer to launch ‘promised’ inquiry on Golden Temple massacre
More than 400 Gurdwaras and Sikh organisations are calling on Sir Keir Starmer to launch an inquiry he promised into potential British involvement in the Golden Temple Massacre.
The groups have signed a letter that was sent to the prime minister urging him to follow through on a commitment made in 2022.
The calls relate to questions around what part the UK and British special forces played in the 1984 killings, in which hundreds of Sikhs died after the Indian military entered the temple complex where separatists had sought refuge.
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In 2014, the UK government accidentally revealed Margaret Thatcher was aware of the Indian state’s intention to raid the temple and in the months before the raid, a British SAS officer provided advice to the Indian government.
A subsequent investigation commissioned by David Cameron found that a single officer provided advice – and there was “no evidence of UK government involvement in the operation itself”.
However, this investigation was criticised as a cover-up due to its limited scope and quick timeframe.
In 2022, Sir Keir wrote to all Gurdwaras and Sikh organisations, saying: “A future Labour government will open an independent inquiry into Britain’s military role in the Indian army’s 1984 raid on the Golden Temple in Amritsar. It is important that we are open, transparent and above reproach in understanding any role the UK may have played in such events.
“This is something I know is important to our Sikh communities here and throughout the world.”
However, an announcement on the inquiry is yet to materialise.
In the letter sent to the prime minister by the Sikh Federation, seen by Sky News, Sir Keir is told: “If what is eventually proposed by a Labour government fails to deliver the ‘truth’ as promised by you this will have massive political ramifications for the Sikh community’s support for Labour in future elections for many generations.”
The federation says an inquiry “must” be announced by 31 May.
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Groups ‘disappointed’ by silence on massacre
Sikh Activists fear for their life
Sikh campaigners want Starmer to keep his word. Pic: PA
In a letter to Labour MPs, the Sikh Federation also called on them to put pressure on the government to start an inquiry.
The organisation also said it had heard “extremely worrying rumours” that the Foreign, Commonwealth And Development Office has been under pressure from the Indian government to “avoid or limit” an independent inquiry.
It added: “Civil servants are understood to be advising that a public inquiry is expensive and could damage relations with India.”
The UK is currently trying to negotiate a new trade agreement with India in the wake of Brexit. Attempts by the Conservative government failed due to a difference in position over visas.
There is a campaign among some in the Sikh community for an independent nation to be established – known as Khalistan – out of parts of the Punjab region in northern India.
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These efforts are strongly opposed by Narendra Modhi’s Hindu nationalist BJP movement.
The FCDO and Downing Street have been approached for comment.
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