London Daily

Focus on the big picture.
Monday, Jun 29, 2026

Tony Blair says 'cut Starmer some slack' over tax comments

Tony Blair says 'cut Starmer some slack' over tax comments

Exclusive: former Labour leader says the public has no interest in ‘mouthing off’ as if times were normal
Tony Blair has urged Keir Starmer’s critics to “cut him some slack” and backed his stance on business taxes, after a backlash over comments from Starmer that appeared to suggest Labour was against taxing corporations to pay for the pandemic.

Labour clarified its position on Thursday, with the shadow chancellor, Anneliese Dodds, and shadow foreign secretary, Lisa Nandy, publicly suggesting that the party was prepared to back business tax increases as long as they were not implemented immediately.

Party sources said they would also look at any plans put forward by Rishi Sunak at next week’s budget for a windfall tax on firms that have profited from the pandemic. “We’ll look at the detail of what the chancellor proposes, but we don’t think there should be tax rises right now,” said a source.

Starmer’s comments on Wednesday that “now is not the time for tax rises on families and businesses” irritated some colleagues who felt they could be bounced into opposing plans mooted by the chancellor to increase corporation tax at next week’s budget – a policy Labour has previously proposed.

In an interview with the Guardian, Blair, the last Labour leader to win a general election, praised Starmer and warned his party critics not to underestimate the challenges of being the opposition leader during the pandemic.

“I think where people have got to cut him some slack and be fair to the guy is, it’s the government that matters at the moment,” he said. “The public have no interest at all in mouthing off as if you’re in normal political times, because they know you’re not.

“I think he’s done a very good job. I think he has actually been pretty judicious in being critical where he needs to be, constructive most of the time,” Blair said.

Asked about Starmer’s comments on tax, which were criticised by leftwing MPs and the grassroots campaign group Momentum, he said: “I think he’s perfectly sensible to say that. I always used to say to people when I was leading the Labour party, the Labour party’s problem is not that people don’t think you’ll put their taxes up.”

The former Tory leader, David Cameron, added his voice to those warning Sunak not to seek to balance the books, writing in the Times that immediate tax increases “wouldn’t make any sense at all”.

Blair predicted that the next general election would not be fought on the territory of tax and spend that has dominated many recent contests, or on the government’s handling of the pandemic, but on “who’s got the best plan for the future”, including how to respond to rapid technological change.

Labour strategists are wary of being dragged into a messy debate about who should pay for the crisis, when many international experts are warning against tax increases or spending cuts while economies are still deep in recession.

Answering questions after a pre-budget speech to UCL’s Institute for Global Prosperity on Thursday, Dodds said: “If government is saying they will be immediately imposing tax changes on the UK, I do think that’s the wrong decision. That is going against the vast bulk of what expert commentators are saying. If we’re talking about a longer-term trajectory then let’s have that discussion, let’s make sure we do have that more effective tax system.”

However, she warned the government that measures to force through increases in corporation tax would deliver a “hammer blow” to families across the country as they struggled with the fallout from Covid-19.

“That is the wrong decision to be taking right now,” she said. “The UK government’s focus should be on jobs, growth and preserving economic activity. We have had the worst economic crisis of any country in the G7, so we need to be focused on reversing that decline.”

Nandy, speaking on the BBC, said Labour still believed it would be possible to increase corporation tax without compromising the UK’s competitiveness, but she added: “There will be a time for raising taxes, doing it fairly and paying down the debt – but that time is not now.”

Voices from across the political divide and mainstream economists have been broadly united over the need to delay tax rises until an economic recovery from the worst recession in 300 years fully takes hold, despite record public borrowing triggered by the pandemic.

Sunak is expected to confirm the biggest peacetime shortfall in the public finances at next week’s budget as the cost of responding to Covid pushes the budget deficit close to £400bn this year.

However, pressure is mounting for a tougher stance as the pandemic drives up rates of inequality and fuels bumper profits for some firms, including the outsourcing giant Serco, which said on Thursday it had raked in £400m from Covid-related work including running the government’s test-and-trace programme.
Newsletter

Related Articles

0:00
0:00
Close
UK Launches New Measures to Improve Safety Standards in Night-Time Venues
UK Tightens Import Rules for Low-Value Parcels to Support Domestic Retailers
UK Launches £85 Million Obesity Care Programme Targeting Early Intervention Projects
UK Commits Up to $26 Million to Ebola Response in Democratic Republic of Congo
Security Industry Authority Flags Safety Failures in Night-Time Economy Inspections
Cambridge South Railway Station Opens After £250 Million Investment
UK Moves to Close Import Duty Loophole for Small Parcels by 2028
UK Invests £85 Million in Projects to Transform Obesity Care
Berkeley Group Warns London Housebuilding Falling Far Short of Demand
UK Council Tax Arrears Rise to £9.3 Billion Amid Ongoing Household Financial Strain
Markets Watch Political Transition as Andy Burnham Emerges as Labour Leadership Frontrunner
Extreme Heat Raises Long-Term Risks for UK Inflation and Productivity, Analysts Warn
UK Health Alerts Extended as Record June Heatwave Grips England
UK Parliament Faces High-Stakes Week of Spending, Security and Industrial Legislation
UK Repeals Vagrancy Act Ending Criminalisation of Rough Sleeping in England and Wales
GB News Pundit Charged With Fraud Over Alleged Conduct as Former Labour Adviser
Reform UK Gains Parliamentary Visibility in First Senedd Opposition Appearance
Metropolitan Police Arrest Man on Suspicion of Attempted Murder After London Car Incident
Ocado Chief Executive Tim Steiner Faces Scrutiny Over £100 Million Remuneration Package
British Chambers of Commerce Downgrades UK Growth Outlook to 0.9 Percent for 2026
Nottingham University Hospitals Maternity Failings Trigger Renewed Calls for Public Inquiry
Severe Heatwave Disrupts UK Transport Networks and Strains Public Services Across England
Labour Leadership Transition Raises Prospect of Andy Burnham Becoming UK Prime Minister
UK Government Confirms Further Medicine Price Concessions for Community Pharmacies in June
British Chambers of Commerce Calls for Public Procurement Reform to Boost Regional Growth
Thousands Mark Armed Forces Day Across the United Kingdom With National Parades and Flypasts
Man Arrested in Ealing on Suspicion of Attempted Murder After Vehicle Ramming Incident Injures Five
Cambridge South Station Opens With £250 Million Investment to Strengthen Life Sciences Corridor
UK Heat-Health Alerts Extended Across England as High Temperatures Persist
Thames Water and Energy Operators Warn of Peak Demand Risks During UK Heatwave
Government Conference Highlights Push for Evidence-Led Policy Across UK Public Sector
Insolvency Service Reports Improved Confidence in UK Insolvency System
Security Industry Authority Finds Widespread Safety Failures in UK Night-Time Economy
Nigel Farage Expands Anti-WHO Campaign Into United States With New Lobbying Structure
Home Secretary Seema Mahmood Unveils New Safe Routes Plan for Asylum Seekers
UK Government Warns of Peak Electricity and Water Pressure Amid Ongoing Heatwave
New Nuclear Plant in Wales Named Gwyndod Power Station as Energy Strategy Advances
UK Announces First Major Hydropower Projects in Four Decades to Expand Renewable Capacity
Thirteen Men Charged in Major UK Sexual Abuse Case as Investigation Continues
UK Launches Cross-Sector Climate Security Taskforce Linking Environment and National Security
UN Secretary-General António Guterres Calls for Urgent Global Methane Emissions Cuts in London
World Bank Approves $1 Billion UK-Backed Financing Package for Ukraine Recovery
UK Pledges Emergency Aid and Rescue Team Deployment to Earthquake-Hit Venezuela
Bank of England Holds Interest Rates at 3.75 Percent for Fourth Straight Meeting
Record-Breaking Heatwave Puts Strain on UK Health Services and Energy Networks
London Ambulance Service Sees Record Emergency Demand as Heatwave Intensifies
British Chambers of Commerce Warns of Prolonged Weak Investment Climate Through 2027
Bank of England Holds Interest Rates as Inflation Risks Persist
UK Construction Sector Faces One Percent Contraction Amid Cost and Investment Pressures
Former DUP Leader Sir Jeffrey Donaldson Convicted of Sexual Offences
×