London Daily

Focus on the big picture.
Monday, Sep 15, 2025

Covid shows need for bigger government role, says Starmer

Covid shows need for bigger government role, says Starmer

The Covid-19 crisis has shown the government needs to play a bigger role in the economy permanently, Labour's leader will argue on Thursday.

In a speech online, Sir Keir Starmer will say the pandemic has "shifted the axis" on the size of the state in a similar way to World War Two.

And he will add there cannot be a "return to business as usual" in the wake of the virus.

He will also call for business support to be extended at next month's Budget.

The government says it has spent £280bn to help the economy through the pandemic, including tax breaks, grants and wage support for workers.

Chancellor Rishi Sunak is due to set out the "next phase of the plan to tackle the virus and protect jobs" in his Budget speech on 3 March.

In his speech on Thursday, the Labour leader will accuse the Conservatives of creating an "insecure and unequal economy" that has been "cruelly exposed by the virus".

He will say the Budget will mark a "fork in the road," and argue for a new partnership between "an active state and enterprising business".

Sir Keir, who has faced criticism over his party leadership in recent weeks, will use the speech to set out new policies for "long-term security to the economy".

And he will try to keep up pressure on ministers ahead of the Budget by reiterating his party's calls for the government to:

*  Extend the weekly £20 increase to universal credit benefits, introduced last year, beyond its scheduled end-date on 31 March

*  Extend the business rates holiday and VAT cut offered to firms in the leisure and hospitality sectors beyond April

*  Give local councils "the funding they need" to avoid having to use new powers to raise council tax by up to 5%.

He will say: "To invest wisely and not to spend money we can't afford. Those are my guiding principles."

"But I think that Covid has shifted the axis on economic policy: both what is necessary and what is possible have changed," he will add.

"The age in which government did little but collect and distribute revenue is over. The mistakes of the last decade have made sure of that.

"I believe people are now looking for more from their government - like they were after the Second World War."

He will say the pandemic should provide a "call to arms" akin to the WW2-era Beveridge report, which laid the foundations for the UK's welfare state.

And he will say the damage to the British economy from Covid has been worsened "because the foundations of our society had been weakened over a decade".

Budget pressures


A Budget had been expected to take place in autumn last year, but it was delayed until next month because of the coronavirus pandemic.

Covid restrictions have prompted the government to spend billions in unprecedented interventions aimed at keeping the economy afloat during the crisis.

These have included the furlough wage support scheme to help firms pay employees, and grants for people who are self-employed.

This has pushed up UK debt to £2.13 trillion, equivalent to 99.4% of gross domestic product (GDP), a level not seen since the early 1960s.

Support for the economy has pushed borrowing for this financial year to £270.8bn - £212.7bn more than a year ago, according to latest official figures.

The chancellor is under pressure from MPs and industry groups to extend support measures - but also to spell out when and how the UK's debts can be paid down.

Newsletter

Related Articles

0:00
0:00
Close
London Daily Podcast: London Massive Pro Democracy Rally, Musk Support, UK Economic Data and Premier League Results Mark Eventful Weekend
This Week in AI: Meta’s Superintelligence Push, xAI’s Ten Billion-Dollar Raise, Genesis AI’s Robotics Ambitions, Microsoft Restructuring, Amazon’s Million-Robot Milestone, and Google’s AlphaGenome Update
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Musk calls for new UK government at huge pro-democracy rally in London, but Britons have been brainwashed to obey instead of fighting for their human rights
Elon Musk responds to post calling for the murder of Erika Kirk, widow of Charlie Kirk: 'Either we fight back or they will kill us'
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
USA: Office Depot Employees Refused to Print Poster in Memory of Charlie Kirk – and Were Fired
Proposed U.S. Bill Would Allow Civil Suits Against Judges Who Release Repeat Violent Offenders
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
French Debt Downgrade Piles Pressure on Macron’s New Prime Minister
US and UK Near Tech, Nuclear and Whisky Deals Ahead of Trump Trip
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
Anesthesiologist Left Operation Mid-Surgery to Have Sex with Nurse
Tens of Thousands of Young Chinese Get Up Every Morning and Go to Work Where They Do Nothing
The New Life of Novak Djokovic
The German Owner of Politico Mathias Döpfner Eyes Further U.S. Media Expansion After Axel Springer Restructuring
Suspect Arrested: Utah Man in Custody for Charlie Kirk’s Fatal Shooting
In a politically motivated trial: Bolsonaro Sentenced to 27 Years for Plotting Coup After 2022 Defeat
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
ChatGPT CEO signals policy to alert authorities over suicidal youth after teen’s death
The British legal mafia hit back: Banksy mural of judge beating protester is scrubbed from London court
Surpassing Musk: Larry Ellison becomes the richest man in the world
Embarrassment for Starmer: He fired the ambassador photographed on Epstein’s 'pedophile island'
Manhunt after 'skilled sniper' shot Charlie Kirk. Footage: Suspect running on rooftop during panic
Effective Protest Results: Nepal’s Prime Minister Resigns as Youth-Led Unrest Shakes the Nation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
King Charles and Prince Harry Share First In-Person Moment in 19 Months
Starmer Establishes Economic ‘Budget Board’ to Centralise Policy and Rebuild Business Trust
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Brazilian police say ex-President Bolsonaro had planned to flee to Argentina seeking asylum
Trinidad Leader Applauds U.S. Naval Strike and Advocates Forceful Action Against Traffickers
Kim Jong Un Oversees Final Test of New High-Thrust Solid-Fuel Rocket Engine
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Supreme Court temporarily allows Trump to pause billions in foreign aid
Charlie Sheen says his father, Martin Sheen, turned him in to the police: 'The greatest betrayal possible'
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
Pig Heads Left Outside Multiple Paris Mosques in Outrage-Inducing Acts
Nvidia’s ‘Wow’ Factor Is Fading. The AI chip giant used to beat Wall Street expectations for earnings by a substantial margin. That trajectory is coming down to earth.
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
On the Anniversary of Queen Elizabeth’s Death: Prince Harry Returns to Britain
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Murdoch Family Finalises $3.3 Billion Succession Pact, Ensuring Eldest Son’s Leadership
×