Sir Keir Starmer has warned that the upcoming October Budget will be “painful” and that the government will need to make “significant demands” of the public. Speaking from the Downing Street garden, the Prime Minister emphasized that people would need to “accept short-term hardship for long-term benefit.”
While he didn’t provide specific details about the Budget, Starmer hinted that those with the “broadest shoulders” would bear the greatest burden. He also claimed to have inherited not just an “economic black hole” but a “societal black hole” from the previous Conservative government.
Kemi Badenoch, a Conservative leadership candidate and shadow housing secretary, criticized Starmer, accusing him of treating the British public as fools. She argued that his “dishonest analysis” would not hold up and accused him of failing to deliver on his campaign promises.
Since taking office in July, Labour has highlighted the challenges it faces, blaming the previous Tory administration for leaving behind unresolved issues. Starmer stated that the situation was “worse than we ever imagined” and accused the Conservatives of creating a £22 billion gap in public finances—a claim the Tories deny.
Starmer also criticized the former government for what he described as a lack of honesty, accusing them of offering “populist snake oil” that led to repeated failures. He suggested that the recent riots were a result of societal fractures caused by 14 years of Conservative rule.
Looking ahead, Starmer called for “tough action” to “fix the foundations of the country” and reiterated his campaign pledge not to raise National Insurance, income tax, or VAT. However, Chancellor Rachel Reeves has indicated that some taxes may need to increase, and she hasn’t ruled out changes to inheritance tax, capital gains tax, or pension tax relief.
The government has already announced some cost-cutting measures, including canceling a planned cap on social care payments and withdrawing the winter fuel allowance from 10 million pensioners. Labour backbenchers have reported concerns from constituents, particularly about the end of universal winter fuel payments for pensioners. However, some believe that the public will understand the reasoning behind these decisions after hearing from Starmer.
Some Conservatives have criticized the government’s decision to award pay raises to public sector workers while cutting the winter fuel allowance. Starmer defended the move, arguing that allowing national strikes to continue without resolution would be even more costly for the country.
In response to accusations of “cronyism” from the opposition, Starmer said he was focused on working quickly and ensuring the “right people” are in key positions. He emphasized his commitment to restoring “honesty and integrity” in government and dismissed criticism from the Conservatives on this issue.
In an opinion piece published in the Times ahead of his speech, Starmer discussed how the setting of his speech, the Downing Street rose garden, had become a “symbol of the rot” within the government during prior Conservative leadership. He referenced incidents involving former aide Dominic Cummings and former Prime Minister Boris Johnson that undermined public trust.
Starmer delivered his speech to an audience of about 50 people he met during the election campaign, including small business owners and public servants.
Reacting to Starmer’s speech, Conservative Party chairman Richard Fuller dismissed it as a “performative” attempt to distract from broken promises. Fuller criticized Labour for abandoning its public service ambitions and accused the party of being engulfed in “sleaze” and of harming pensioners while taxing working people.
SNP deputy leader Keith Brown also criticized Starmer, saying Labour had failed to stand up to the Conservatives on key issues like austerity and Brexit. Green Party co-leader Carla Denyer argued that enduring more economic pain was not what people voted for and criticized Labour for refusing to tax the super-rich, indicating that “business as usual” was still in effect.
