The Prime Minister told a behind-closed-doors meeting of Labour MPs the long-term impact of Tory austerity and a botched Brexit deal ‘is worse than even we feared’
Keir Starmer addressed a behind-closed-doors meeting of Labour MPs(Image: PA)
Keir Starmer has warned of “tough but fair” decisions at the Budget against a grim economic backdrop.
The Prime Minister told a behind-closed-doors meeting of Labour MPs the long-term impact of Tory austerity and a botched Brexit deal “is worse than even we feared”. But he said it will be a “Labour government making Labour choices” – vowing to protect the NHS and improve the cost of living for struggling Brits.
It comes as the Chancellor Rachel Reeves grapples with a £20billion to £30billion blackhole in the public finances in order to stick to her spending rules. Ms Reeves, who will deliver the Budget on November 26, is also expected to deliver a key speech on the economy this week.
Just days after Mr Starmer refused to repeat Labour’s vow to protect working people from increases to income tax, VAT, and national insurance. The move has fuelled speculation Ms Reeves will hike income tax at the Budget in what would be a clear breach of the party’s election manifesto.
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Addressing the Parliamentary Labour Party (PLP) on Monday evening, Mr Starmer stressed the Budget will be “built on Labour values” as he attempted to rally his MPs. He told them: “It will protect public services like the NHS. It will reduce our national debt and improve the cost of living.
“We had the fastest growing economy in the G7 in the first half of this year, but everyone knows the Budget takes place against a difficult economic backdrop.”
The PM said: “It’s becoming clearer that the long-term impact of Tory austerity, their botched Brexit deal and the pandemic on Britain’s productivity is worse than even we feared. Faced with that, we will make the tough but fair decisions to renew our country and build it for the long term. A Labour government making Labour choices.”
He said the Tories should never be trusted on the economy again and also took aim at Nigel Farage’s Reform UK. Mr Starmer argued mooted spending cuts by the right-wing outfit would result in “cuts to the NHS”. He added: “He wants to cut the minimum wage while bringing in giveaways to billionaires. It’s clear where his priorities lie.”
On Monday evening the senior Labour MP Dame Emily Thornberry also said it was important for Labour MPs to “remain disciplined and united” in the run-up to the Budget.
But she told LBC: “That isn’t to say that we shouldn’t have opinions, and I’ve certainly written to Rachel Reeves with some ideas that I’ve got for improving what may be in the Budget, whether she pays attention or not I don’t know. But it’s better to do that privately than it is to do it publicly.”