Prime Minister Keir Starmer Warns of Economic Challenges Ahead

Prime Minister Sir Keir Starmer warns things will get worse before they get better, with a 'painful' budget expected on 30 October. Labour has inherited financial issues from the Conservatives, impacting public services. The government plans selective tax increases and spending cuts to address a £22 billion budget gap.

Prime Minister Sir Keir Starmer has warned that 'things will get worse before they get better.' He highlighted that his Labour government inherited a financial crisis from the Conservatives, impacting public services like health and prisons.

The government will announce its budget on 30 October, which is expected to feature tough measures including potential tax increases and spending cuts.

Economic growth has been sluggish, exacerbated by an ageing population and the aftermath of Brexit.

Chancellor Rachel Reeves previously identified a £22 billion budget gap, which complicates Labour's efforts to improve public finances without excessive borrowing.

Labour intends to raise taxes selectively, maintaining levies on high earners and avoiding increases on income tax, National Insurance, VAT, and corporation tax.