UK Business: Sir Keir Starmer warns that the economy is in danger and promises to ‘repair the foundations’.

Keir Starmer with senior policing leaders during a meeting in Downing Street.
Pic: PA

The Labour leader promises to put working people “at the heart” of his government’s plans as speculation over potential tax increases grows in the autumn.

Sir Keir Starmer will pledge on Tuesday to “reverse a decade of decline” and “fix the foundations” of the British economy.

The prime minister will deliver a speech in the gardens of Downing Street ahead of parliament’s return next week. He will acknowledge the state of the public finances but pledge to “do the hard work needed to root out 14 years of rot” while blaming the former Conservative government.

And he will warn that his administration will not continue with “business as usual” now that Labour is in power, saying there will be “no more politics of performance, papering over the cracks, or division and distraction.”.

However, Conservative Party chairman Richard Fuller stated that it would be “nothing but a performative speech to distract the public from the promises Starmer made that he never had any intention of keeping.”.

The government has repeatedly stated that the Tories have left a £22 billion “black hole” in the Treasury, with reserve funds of £9 billion spent “more than three times over” since entering office about eight weeks ago.

Although recent growth has exceeded expectations, public borrowing remains at a record level, and inflation increased in August.

The government plans to reduce the deficit by ending winter fuel subsidies for all seniors who do not receive pension credit, delaying social care measures, and requiring ministries to save an estimated £3 billion.

Ministers have approved wage increases for junior physicians and train drivers and have pledged to spend in priority areas such as border security and teacher recruitment.

Chancellor Rachel Reeves’ budget in October is expected to increase taxes, despite Labour’s election promise not to raise levies on ‘working people’.

However, it is unclear who would be targeted to obtain the necessary sums, and the administration says that it will remain focused on economic growth.

Reeves

The prime minister will deliver his speech to approximately 50 people he met on the campaign trail, saying: “When I stood on the steps of Downing Street two months ago, I vowed this administration will serve people like you—those who serve the community and the country every day.

“I promised that we would get a grip on the problems we face and that we would be judged by our actions, not by our words.”

He would add, “We will do the hard work required to root out 14 years of rot and reverse a decade of decline.”

“We will repair the foundations, protecting government money and people’s living conditions. We’ll overhaul our planning system to develop the new homes we require. We will strengthen workers’ rights to ensure their security, dignity, and respect.

“We will tighten border security. We will crack down on crime. We will modernise public transport. And we will provide our children all the opportunities they need to prosper.”

Sir Keir will declare that while his government “won’t always be flawless,” working people will be “at the centre” of all it does, adding, “That’s why I wanted to invite you here today. To demonstrate that the decent, hard-working people who form the backbone of our country belong here and that this government is for them.

“A garden and a building that were once used for lockdown-breaking parties are now back in your service.”

The prime minister is also likely to highlight what he refers to as a “societal black hole” that he feels the Tories also created, promising to be “honest with people about the choices we face.”.

In response to the summer riots, Sir Keir stated, “The riots did not just betray the sickness; they revealed the cure, found not in the cynical conflict of populism but in the coming together of a country the morning after and clearing up their community.”

“Because that’s who we are and what we stand for. People who cared about their neighbours. Communities that stood firm against hate and division. Emergency personnel who performed their duties, even while they were in danger. “And a government that prioritises the people of this country.”

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