Prime Minister Sir Keir Starmer has robustly defended Chancellor Rachel Reeves's recent Budget, labelling it a "moment of personal pride," while simultaneously announcing a fresh drive to reform the welfare system.
Prime Minister Champions Budget Record
In a major speech delivered in London on Monday, Sir Keir touted his government's economic record, forcefully rejecting accusations that the Chancellor had misled voters over the state of the public finances. He highlighted key achievements from the Budget, including lifting over half a million children out of poverty and a significant rise in the national minimum wage.
The Prime Minister insisted these were victories that represented a "record to be proud of." His defence comes as the Chancellor faces scrutiny over her portrayal of fiscal challenges, despite the Office for Budget Responsibility reportedly pointing to a surplus of around £4 billion.
New Push on Welfare and Work
Alongside his defence of the Treasury's plans, Sir Keir used the platform to outline a new focus on welfare reform. He argued that the current system has, in many cases, "trapped people in poverty" rather than helping them into sustainable work.
To address deep-seated issues within the system, the Prime Minister confirmed he has commissioned former Labour minister Alan Milburn to lead a review. This report will specifically examine the interconnected problems of youth unemployment, economic inactivity, and barriers to work.
Denial of Misleading the Public
When directly confronted with claims that the Chancellor's rhetoric on tight public finances was at odds with the reported surplus, Sir Keir Starmer was unequivocal. He denied any suggestion of misleading the British public, standing firmly by both the Chancellor's assessment and the government's overall fiscal narrative.
The speech, set against the political backdrop of Westminster, signals the government's intent to double down on its economic strategy while seeking to tackle one of the UK's most persistent social policy challenges. The coming months will see the details of both the Milburn review and the wider welfare reform agenda take shape.
