Sir Keir Starmer will seek to regain control of the political agenda on Thursday with a series of announcements on the cost of living and devolving power to local communities. The Prime Minister's efforts come as Westminster remains fixated on the Makerfield by-election, now confirmed for June 18, and the possibility of a leadership challenge by Greater Manchester mayor Andy Burnham.
Leadership contenders circle
Fellow leadership hopeful Wes Streeting set the stage for a potential bid by outlining plans for a wealth tax that would equalise capital gains tax with income tax. Mr Streeting, who resigned as health secretary last week calling on the Prime Minister to step down, argued on Thursday that the current system is “not fair” and “penalises work”. His proposal to align capital gains tax rates with the income tax rate of up to 45% could generate up to £12 billion annually, he claimed.
Allies of Mr Burnham have indicated he may not launch an immediate bid for the top job if he returns to Westminster. Labour deputy leader Lucy Powell, who backed his previous unsuccessful attempt to contest a by-election in Gorton and Denton, told LBC she did not “expect that’s what Andy’s coming in to do”. Nevertheless, a contest is widely anticipated following Mr Burnham’s call for a “new path” and pledge to “change Labour”.
This expectation has fuelled speculation about the mayor’s potential policies in Downing Street, including reports he might continue Home Secretary Shabana Mahmood’s plan to significantly extend the waiting period for immigrants to obtain permanent residency. Mr Burnham’s team declined to comment on reports in the Guardian that he would support increasing the wait for indefinite leave to remain from five years to between 10 and 20 years.
Policy announcements
Away from the by-election, ministers aim to shift focus from speculation about Sir Keir’s future to policy. Chancellor Rachel Reeves is expected to announce plans to cut tariffs on some food products to mitigate the impact of the Iran war. She will also introduce free bus travel for children during August, following the Government’s decision to postpone a planned September rise in fuel duty.
Communities Secretary Steve Reed will deliver a speech on Thursday outlining proposals to grant local communities more authority over their areas. These include minimum standards for services such as pothole repairs and street cleaning, as well as powers to limit the number of vape shops and gambling businesses on high streets.
Prime Minister defends record
Defending his Government’s record in The Times, the Prime Minister insisted his policies were delivering results. “In a time of conflict and global economic strife, governments have to be active and interventionist to change the failing status quo,” Sir Keir wrote. “That is what we’re doing in the UK and we are delivering results.”
He highlighted the recent trade deal with the six economies of the Gulf Cooperation Council, stating: “Yesterday we struck our fifth trade deal in less than two years… the UK is the first G7 economy to deliver a trade agreement with this group.” He added that by “slashing tariffs in key areas like food, medical equipment and advanced manufacturing, as well as boosting access for our services providers, our economy stands to gain around £3.7 billion each year from this deal, supporting thousands of well-paid jobs. This means a boost of £1.9 billion a year to real wages for working people.”
Sir Keir also noted: “Previous governments weakened our global connections. They damaged our ability to trade and navigate international crises. I pledged we would be different and we have delivered by removing international trade barriers for British businesses at an unprecedented rate. In total we have secured £360 billion of investment into the UK since the general election, securing around 170,000 jobs.”
By-election campaign
Meanwhile, campaigning continues in Makerfield, where Mr Burnham faces Reform UK’s Robert Kenyon, who contested the seat in 2024, and Conservative Michael Winstanley, who last stood in the constituency in 1997. The Green Party on Thursday announced nurse Chris Kennedy as its candidate. Mr Kennedy said “we can’t let this election be dominated by a Westminster psychodrama” as he vowed to “fight for warmer homes, lower bills, and a fairer economy”. The Liberal Democrats are yet to announce their candidate.
