Keir Starmer has warned that October’s Budget will be “painful” as he blamed the Tories for the financial mess his government has been left to clear up.
The prime minister - who has been attacked for removing winter fuel payments from 10 million pensioners - admitted he will have to take “unpopular decisions” to get the country back on track.
At a press conference in the Downing Street garden this morning, Starmer said: “There is a Budget coming in October and it is going to be painful. We have no other choice given the situation we are in.”
In a clear sign that tax rises are on the way, he added: “Those with the broadest shoulders should bear the heavier burden.”
And he said he would be asking the public to “accept short-term pain for long term good”.
He added: “We have made that difficult decision to mend the public finances so everyone benefits in the long run, including pensioners.
“Now that is a difficult trade-off – and there will be more to come.
“I won’t shy away from making unpopular decisions now if it’s the right thing for the country in the long term.
“That’s what a government of service means.”
Speaking a week before parliament resumes, he blamed the “inheritance” from the Conservatives, and the £22 billion black hole the party left in the UK finances.
“We have no other choice, given the situation that we’re in”
— BBC Politics (@BBCPolitics) August 27, 2024
Keir Starmer says October’s Budget “is going to be painful” and "those with the broadest shoulders should bear the heavier burden"
https://t.co/UqysDsBYbhpic.twitter.com/284XuOPlbV
Reporters then rounded on the PM over his financial decisions.
The BBC’s Vicky Young said many believe Starmer was not honest during the election campaign, particularly with winter fuel payments.
She said: “If you’re being honest can you tell them now what kind of tax rises you’re considering?”
He said Labour were still being honest, as they will not increase national insurance, VAT or income tax, as Labour’s election manifesto had promised.
Starmer said: “I didn’t want to have to deal with the winter fuel allowance for pensioners – but we have to fix the NHS, we have to fix our homes, our schools, and pensioners rely on them in the same way everyone else does.
“I’m not going to pre-empt the Budget but I absolutely do not accept that the inheritance we have is anything other than dire.”
ITV’s Anushka Asthana then asked: “What do you say to those pensioners who are not well off who say you are choosing to balance the books on the backs?”
Starmer said the last government had “run away” from making ends meet, particularly when it came to settling pay disputes with striking workers.
“You can’t carry on like that, you’ve got to make difficult choices,” he added.
Sky News’ Beth Rigby also cornered him over these financial concerns, saying: “You say you want to build trust and be honest with people.
“You’ve got off to a bad start with pensioners who voted for you and then you cut their winter fuel allowance, and it wasn’t in your manifesto.
“You also said in your general election that you had no plans to raise taxes beyond what you said in your manifesto.
“So can you please level with people – are you going to raise taxes, and are you looking when you talk about the broader shoulders, are you looking at taxes on working people or are you looking at a range of wealth taxes on shareholders, homeowners, big business?”
He said they would not increase tax on working people, but said: “We have to get away from this idea that the only levers we can pull are more taxes or more spending.”
But Laura Trott, the shadow chief secretary to the Treasury, said: “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.”
