Prime Minister Sir 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, Starmer defended Chancellor Rachel Reeves' decision to impose £26bn worth of tax rises, insisting the measures were necessary to renew Britain's economy.
Starmer's comments come amid criticism from the Conservatives, who have called for Reeves to resign over allegations she misled voters about the impact of lower growth forecasts from the Office for Budget Responsibility (OBR). The Prime Minister will deliver a speech on Monday outlining a multiyear economic plan focused on deregulation, welfare reform, and closer ties with Europe.
In his article, Starmer wrote: 'By delivering a big, bold long-term plan, not a set of quick fixes, we will renew Britain. We must become again a serious people, with a serious government, capable together of doing difficult things to regain control of our future.' He added that the government would be judged on its progress at the next election.
The Prime Minister also pledged further deregulation, asking Business Secretary Peter Kyle to explore ways to simplify large infrastructure projects. Additionally, Starmer announced a renewed attempt to overhaul the welfare system, with former Health Secretary Alan Milburn tasked to examine the role of mental health and disability in youth unemployment.
Starmer rejected accusations of pursuing austerity, stating: 'Turning on the borrowing taps or returning us to austerity – that is the politics of decline and I will not accept it.' The Budget, which raised various taxes and extended freezes on income tax and national insurance thresholds, has been well-received by markets, with UK borrowing costs falling to their lowest levels this year.
