Sir Keir Starmer will attempt to regain control of the political agenda on Thursday with a series of announcements focused on the cost of living and devolving power to local communities. This comes as Westminster remains preoccupied with the Makerfield by-election, now confirmed for June 18, and the possibility of a leadership challenge from Greater Manchester mayor Andy Burnham.
Fellow leadership hopeful Wes Streeting has set out plans for a wealth tax that would equalise capital gains tax with income tax. Streeting, who quit as health secretary last week calling on the Prime Minister to go, said the current system is “not fair” and “penalising work”. His plan could raise up to £12 billion a year. Allies of Burnham have suggested he may not launch an immediate bid for the top job if he returns to Westminster, but a contest is widely expected after his call for a “new path” and promise to “change Labour”.
Chancellor Rachel Reeves is expected to announce plans to cut tariffs on some food products to mitigate the impact of the Iran war, as well as free bus travel for children during August, following the Government’s decision to postpone a rise in fuel duty. Communities Secretary Steve Reed will also set out proposals to give local communities more power, including minimum standards for services like pothole repairs and powers to limit the number of vape shops and gambling businesses on high streets.
Defending his Government’s record in The Times, the Prime Minister insisted his policies were delivering results. He highlighted the UK’s fifth trade deal in less than two years, a new agreement with the six economies of the Gulf Cooperation Council, which he said would boost the economy by around £3.7 billion each year and support thousands of jobs. Sir Keir added that the Government had secured £360 billion of investment since the general election, securing around 170,000 jobs.
Campaigning continues in Makerfield, where Burnham faces Reform UK’s Robert Kenyon, Conservative Michael Winstanley, and Green Party candidate Chris Kennedy, a nurse who vowed to fight for “warmer homes, lower bills, and a fairer economy”.
