Starmer warns UK will face ‘unprecedented challenges’ ahead of Budget

Look like sir Keir Starmer warned that Britain faces “unprecedented challenges” in a speech on Monday 28 October, on the eve of Labour’s first meeting. Budget for 14 years.

The Prime Minister’s speech in the West Midlands – a region where Labor trounced the Tories in the general election – came amid widespread speculation that Rachel Reeves is intends to raise taxes by between £25 and £40 billion.

Sir Keir said the country was facing unprecedented challenges after the last government covered up the state of public finances and the collapse of public services:

“We have to be realistic about where we are as a country. This is not 1997, when the economy was decent but public services were on their knees. And this is not 2010, when public services were strong but public finances were weak. These are unprecedented circumstances.

“And that’s before we even get to the long-term problems that have been ignored for fourteen years. The economy is riddled with weaknesses in productivity and investment. A state that urgently needs modernization to face the challenges of an unstable world.”

The Chancellor is now expected to increase employers’ national insurance contributions by 2 per cent, despite a pledge not to increase national insurance in the Budget.

Inheritance and capital gains taxes are also expected to rise. Ms Reeves has pledged not to raise “taxes on working people”, including income tax, staff national insurance contributions or VAT.