Starmer insists 'better days are ahead' as PM says Budget will be 'harsh reality' unlike 1997 and 2010
27 October 2024, 22:31
Prime Minister Sir Keir Starmer says that Wednesday's Budget will embrace the 'harsh light of fiscal reality' - but insists that 'better days are ahead' for Britain.
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In a speech before the momentous financial statement, Starmer will warn of "unprecedented" economic challenges and invite the public to judge him on his ability to rise to them as he sets the tone for Wednesday's announcement.
The Prime Minister has pledged to "ignore the populist chorus of easy answers" - seeming to pave the way for tax hikes including a rumoured increase to employer National Insurance contributions.
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Sir Keir is expected to say: "We have to be realistic about where we are as a country. This is not 1997, when the economy was decent but public services were on their knees.
"And it's not 2010, where public services were strong, but the public finances were weak. These are unprecedented circumstances.
"And that's before we even get to the long-term challenges ignored for 14 years: an economy riddled with weakness on productivity and investment, a state that needs urgent modernisation to face down the challenge of a volatile world."
The Labour leader will say that he won't offer UK economic woes "as an excuse" - adding that he expects "to be judged on [his] ability to deal with this".
He will go on: "Politics is always a choice. It's time to choose a clear path, and embrace the harsh light of fiscal reality so we can come together behind a credible, long-term plan."
Despite the tight financial picture, Chancellor Rachel Reeves pledged £1.4 billion in next week's Budget to fix crumbling schools and triple breakfast clubs.
But education unions have said that more money is needed.
The Chancellor said that children should not suffer because of the parlous state of Britain's finances, including a widely trailed multi-billion-pound 'black hole' of overspend.
Some economists cautioned that most of the funding announced on Sunday would be enough only to keep existing initiatives going.
The Treasury said the £1.4 billion would "ensure the delivery" of the school rebuilding programme, which was announced in 2020 and aims to rebuild or refurbish about 500 schools in a decade.
The scheme seeks to carry out construction projects at a rate of about 50 a year but the government last year forecast that it would complete fewer projects than initially planned, according to the National Audit Office.
