Keir Starmer has said Labour’s economic plan will take years to deliver in full, as he seeks to regain control of the narrative following a turbulent response to last week’s budget. In an article for the Guardian, the prime minister defended Chancellor Rachel Reeves’s decision to impose £26bn worth of tax rises, insisting it was the right course of action.
Starmer promised a long-term plan that should be judged at the end of the parliament, and will deliver a speech on Monday outlining a multiyear economic strategy based on deregulation, further welfare reform, and closer European ties. He wrote: “By delivering a big, bold long-term plan, not a set of quick fixes, we will renew Britain.”
In a rebuttal to critics on both the left and right, Starmer ruled out returning to austerity or increasing borrowing, saying those approaches represented “the politics of decline”. He also pledged to overhaul the welfare system, having asked former health secretary Alan Milburn to review the role of mental health and disability in youth unemployment.
The budget has been well received by markets, with UK borrowing costs falling to their lowest levels this year. However, Reeves has faced accusations of misleading voters over the Office for Budget Responsibility’s forecasts. One cabinet minister told the Times that the cabinet was not informed about the true state of the OBR projections before the budget.
