Things can only get worse: Starmer to warn Brits that country faces long road to recovery

24 August 2024, 23:03 | Updated: 25 August 2024, 10:59

Britain will get worse before it gets better, Prime Minister Sir Keir Starmer is set to warn in first major speech as premier.
Britain will get worse before it gets better, Prime Minister Sir Keir Starmer is set to warn in first major speech as premier. Picture: Alamy

By Chay Quinn

Britain will get worse before it gets better, Prime Minister Sir Keir Starmer is set to warn in first major speech as premier.

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As Parliament prepares to return following a shortened summer break, Sir Keir is set to ramp up attacks on the inheritance his Government was handed by their Tory predecessors.

In the speech, Sir Keir will say: "We have inherited not just an economic black hole but a societal black hole. And that is why we have to take action and do things differently.

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"Part of that is being honest with people - about the choices we face. And how tough this will be.

"Frankly - things will get worse before we get better."

London, UK. 5th July, 2024. Keir Starmer makes his first speech as the new Labour Prime M
In the speech, Sir Keir will say: "We have inherited not just an economic black hole but a societal black hole. And that is why we have to take action and do things differently. Picture: Alamy

Since its landslide election win, Labour has blamed several problems on the Tories - including on economic policy that Chancellor Rachel Reeves has described as a "black hole"/

Sir Keir is expected to develop that line of attack further on Tuesday, saying things are "worse than we ever imagined".

He will say: "In the first few weeks, we discovered a £22 billion black hole in the public finances. And don't let anyone say that this is performative, or playing politics.

"The OBR did not know about this. They wrote a letter saying so. They didn't know - because the last government hid it."

But he will also address the condition of the wider public sector, saying those taking part in the recent riots had been able to exploit "the cracks in our society after 14 years of populism and failure", including a lack of prison places.

One of Labour's first acts in government was to reduce the proportion of their sentences offenders must spend in prison before being released on parole, arguing the previous government had allowed jails to almost completely run out of space.

He will say: "Not having enough prison spaces is about as fundamental a failure as you can get. And those people throwing rocks, torching cars, making threats - they didn't just know the system was broken. They were betting on it. They were gaming it."

File photo dated 17/08/24 of Prime Minister Sir Keir Starmer speaks to the media outside Arden Academy in Solihull, West Midlands. More than half
File photo dated 17/08/24 of Prime Minister Sir Keir Starmer speaks to the media outside Arden Academy in Solihull, West Midlands. More than half. Picture: Alamy

Arguing that change will not happen "overnight", the Prime Minister is also expected to say Labour has achieved "more in seven weeks than the last government did in seven years", including setting up a National Wealth Fund, changing planning policy to build more homes and ending public sector strikes.

Sir Keir's speech comes ahead of a potentially tough period for the Government as it prepares its first budget, due on October 30.

Ms Reeves faces the challenge of delivering on Labour's promises on taxation and spending amid what she has already described as a worse fiscal situation than she was expecting, with some tax rises looking increasingly likely.

The Government also faces the prospect of another rebellion over its plans to restrict the winter fuel payment to only the poorest pensioners, especially in light of Friday's announcement of an increase in the energy price cap.

The Chancellor has argued this is necessary to help bridge the £22 billion gap in this year's budget, but opposition parties and some Labour backbenchers have warned about the impact on pensioners with incomes just above the limit for claiming pension credit.

But with its large majority, the Government is unlikely to see a defeat should the policy come to a vote in the Commons.

Chancellor of the Exchequer Rachel Reeves during a press conference following her statement to the House of Commons on the findings of the Treasury audit into the state of the public finances. Picture date: Monday July 29, 2024.
Chancellor of the Exchequer Rachel Reeves during a press conference following her statement to the House of Commons on the findings of the Treasury audit into the state of the public finances. Picture date: Monday July 29, 2024. Picture: Alamy

Speaking to LBC's Ben Kentish, Cabinet minister Pat McFadden said the PM would be straight forward in the speech because he is "not engaging in snake oil sold to people in recent years".

He claimed people have seen "positive change already" under Labour and "change will come" once the government is able to ensure financial stability.

"What you'll hear on Tuesday is a Prime Minister doing something different from what you've heard in recent years. 

"He will say to people: 'We've had a tough economic inheritance, we've got a tough society inheritance too, as we saw with some of the unrest a few weeks ago, and we're going to work through these challenges.'

"I think it's a refreshing departure not to engage in some of the snake oil that has been sold to people in recent years and actually have a Prime Minister who says, look, we know it's a tough situation. You know, it's tough. That's why you voted for change.

"Change will come, but we've got to work through some of these challenges first."

Conservative Party chairman Richard Fuller said: "Just two months in and Keir Starmer has taken winter fuel payments off 10 million pensioners, showered billions of taxpayers' money on his union paymasters and is now engulfed in a cronyism scandal after parachuting donors and supporters into top taxpayer-funded jobs.

"The soft touch Labour Chancellor is squandering money whilst fabricating a financial black hole in an attempt to com the public into accepting tax rises, and literally leaving pensioners in the cold.

"The Prime Minister really should tell his Chancellor to reverse course or step in himself to reverse her decision."

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