Starmer defends his budget amid mounting debate over tax rises

This budget is the first for the Labor Party, which came to power at the beginning of July, and has become a subject of anticipation. It also raises fears after the Prime Minister announced that it would be “painful” due to tax increases and spending cuts.

A statement issued by Downing Street on Sunday quoted Starmer as saying that he would reject “austerity, chaos and decline, in favor of economic stability, investment and reform.”

With enthusiasm waning four months after the general election, the Prime Minister promised the British people “better days”, by investing “in the future” and rebuilding public services.

Starmer blames the “disastrous legacy” of the Conservatives, who held power in the United Kingdom for 14 years, considering that the Labor Party is now in an “unprecedented situation.”

Finance Minister Rachel Reeves had previously warned that the new government would have to make “difficult decisions” in terms of cutting spending and increasing taxes, in its first budget scheduled to be presented on October 30.

Since Labour’s victory, the minister has repeatedly accused the Conservatives, led by former Prime Minister Rishi Sunak, of leaving a gap worth 22 billion pounds (about 26 billion euros) in this year’s budget.

However, the Prime Minister said that he would not “use this as an excuse” and that he expected to be “judged on his ability to deal with this situation” which requires making “difficult decisions”.

The government has given assurances that it will not raise taxes on “people who work,” which is the main promise of its campaign, but the absence of precise criteria to define this category now raises questions.

Education Minister Bridget Phillipson reiterated Sunday that “when people look at their payslips, they won’t see higher taxes,” without being able to provide further details.

The Finance Minister will have to save up to 40 billion pounds annually by 2030 if she wants to avoid a return to austerity, according to what the British press and economists say.