Labour won’t turn on spending taps, says Starmer

Sir Keir Starmer has warned that Britain will face “significant constraints” on public spending if his party wins the next general election.

He said anyone expecting a Labor government to “turn on the spending taps straight away” would be “disappointed”.

This comes after a think tank claimed that the average UK household is more than £8,000 poorer than households in countries such as France and Germany.

Economic growth will be a key electoral battleground for both major political parties.

The cost of living is at the center of political debate in the UK as inflation and high interest rates put pressure on household budgets.

The Resolution Foundation released a report on Monday, saying: “A toxic combination of low growth and high inequality was squeezing the living standards of low- and middle-income people in the UK long before the cost of living crisis hit.” he claimed.

The think tank, which focuses on improving living standards, has made a series of recommendations, from increasing investment in public services to improving transport systems and housing in London’s suburbs.

Chancellor Rishi Sunak has already made economic growth one of his key pledges, and at a press conference to launch the Resolution Foundation report, Jeremy Hunt defended his autumn statement, saying tax cuts would boost the UK economy. stated that it is aimed at.

Mr Hunt told the conference that the decision to cut business investment tax was aimed at boosting productivity in the UK.

“The only way to improve living standards in the long term is to increase productivity,” he said.

Although the UK is not in recession, there are concerns about slowing economic growth. The economy failed to grow from July to September as successive interest rate hikes raised borrowing costs, according to the latest official figures.

In his speech to the conference, Sir Keir argued that decisions taken by the government and successive Conservative governments over the past 13 years “will constrain what a future Labor government can do”.

“We’re in a hole, that’s for sure,” he said.

“tax [are] None of that was true in 2010, although it was higher than at any time in the post-war period. “Never before has a British government asked people to pay so much for so little,” the Labor leader said.

Sir Keir added that economic growth “needs to become Labour’s obsession if we want to turn the economy around”, and admitted that economic growth “has not always been Labour’s comfort zone”.

But he said economic growth “must serve working people better. It must also improve the standard of living for all communities.”

Last month, Labor announced that the party’s flagship Green Prosperity Plan may never be reached, after key players suggested to the BBC that it may never reach the £28bn a year investment level it had previously promised. The government was forced to deny claims that it could further water down the government.

In June, shadow chancellor Rachel Reeves watered down that promise. A senior member of the Labor Party leadership said the decision was taken due to financial circumstances.

A Conservative Party spokesperson said Labor’s policies “posed significant risks” to the UK economy at a time when borrowing costs were “very high”.

Sir Keir said Labor would be “ruthless in terms of spending every pound wisely” and said he was offering “advice of pragmatism rather than despair”.

Lord Keir joined Mr Hunt in outlining plans including changes to “restrictive planning” laws to build more homes and infrastructure.

He said Labor would deliver “a new deal for working wages with increased mental health support, a fully funded plan to reduce NHS waiting lists, an end to zero-hours contracts, an end to redundancy and rehiring; We will establish bold new laws.” Eliminate racial injustice and achieve a real living wage. ”

The government has announced it will increase the minimum wage by more than £1 to £11.44 next April, but the Office for Budget Responsibility (OBR), the government’s forecaster, says it cannot expect living standards to return to pre-pandemic levels either. said. Until 2027-28.

Critics have called for greater investment in public services, but the Prime Minister said he had inherited an “incredibly difficult situation” under former First Minister Liz Truss.

“I don’t think we want to see a reduction in public investment. We want to get to a situation where that doesn’t happen,” Mr Hunt told the conference.

He said reform of the country’s planning system and reform of the welfare system would help boost economic growth.