SPEAKING from the Rose Garden at Downing Street, Sir Keir Starmer offered the strongest indication yet that taxes may be increased on 30th October. However, he reiterated his election pledge that taxes would not rise for “working people”.
The October budget is expected to be “painful,” according to the Prime Minister. Sir Keir stated, “I will be honest with you, there is a budget coming in October, and it’s going to be painful.”
He added, “Just as I responded to the riots, I’ll need to ask the country to accept short-term pain for long-term gain. It’s a difficult trade-off but necessary for a genuine solution.” The budget is scheduled for 30th October.
Sir Keir emphasised that “those with the broadest shoulders should bear the heavier burden” and that “those who made the mess should have to do their bit to clean it up”. He specifically linked the former to the abolition of the non-dom tax status, and the latter to water companies paying fines.
The Conservatives have accused the Prime Minister of betraying public trust, particularly after his previous commitment not to raise taxes. Former Prime Minister and Conservative leader Rishi Sunak took to social media, stating, “Keir Starmer’s speech today was the clearest indication of what Labour has been planning to do all along—raise your taxes.”
Sir Keir referenced a “£22 billion black hole” in the nation’s finances, which he claimed the Office for Budget Responsibility was unaware of, criticising the previous government. “I said change would not happen overnight,” Sir Keir remarked. “When there is deep rot within a structure, you can’t just cover it up… you have to overhaul the entire system and tackle it at the root, even if it’s difficult or time-consuming.”
Addressing the recent riots following the tragic Southport stabbing, which resulted in the deaths of three young girls, the Prime Minister condemned a “minority of thugs” who believed they could cause chaos without consequences.
When questioned by Sky News political editor Beth Rigby about specific tax increases under consideration, Sir Keir reaffirmed that taxes on “working people”—such as income tax, VAT, and National Insurance—would not be raised. He added, “We need to move away from the idea that the only levers available are more taxes or more spending. Our top priority is to grow the economy.”
In a pointed remark, Sir Keir said, “This is a government for you, in a garden and a building that were once the setting for lockdown parties. Remember the pictures? Right over there, with the wine and the food? Well, this garden and this building are now back in your service.”
Sir Keir has consistently blamed the previous government for influencing his decisions, including the means-testing of winter fuel payments for pensioners.
The government’s claims of a £22 billion “black hole” left by the Conservatives have been challenged, especially after substantial pay awards to unions, including junior doctors and train drivers. Sir Keir acknowledged that he “didn’t want to means-test the winter fuel payment,” but described it as a necessary decision to “protect the most vulnerable pensioners.”
Laura Trott, the Conservatives’ Shadow Chief Secretary to the Treasury, criticised the government, stating: “The government is no longer promising to protect working people from their incoming tax raid because, just like pensioners, working families are next in line for Labour’s tax hikes. After promising over 50 times in the election not to raise taxes on working people, Labour is now laying the groundwork to break even more promises. The Chancellor is entitled to raise taxes to fund her costly choices and the above-inflation pay rises demanded by her union paymasters, but she should have had the courage to be honest from the start. This is a betrayal of people’s trust, and we will hold them accountable for their actions.”
