London Daily

Focus on the big picture.
Monday, Mar 23, 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
Duchess of Sussex Secures ‘As Ever’ Trademark Rights in Australia Ahead of High-Profile Visit
UK Reaffirms Security as Officials Reject Claims of Immediate Iranian Missile Threat
Rising Middle East Tensions Spark ‘Trumpflation’ Debate Over Impact on UK Households
UK Minister Says No Evidence Iran Can Strike Europe Despite Heightened Warnings
British-Iranians Voice Safety Concerns to Authorities as Regional Conflict Intensifies
Confirmed Meningitis Cases Linked to Kent Outbreak Revised Down to Twenty
UK Government Sees No Evidence Iran Can Strike London Amid Rising Regional Tensions
Debate Grows Over Recognition of Indigenous Cultural Icons in the United Kingdom
Iran Missile Launch Toward Diego Garcia Raises Questions After Failed Strike on US–UK Base
Donald Trump Amplifies Viral Satirical Clip Highlighting UK–US Political Dynamics
UK Satirical Show Draws Attention with Sketch Referencing Trump and Prince Andrew
Meghan Markle’s Possible UK Return Sparks Renewed Attention on Sussex Role
Starmer Convenes Urgent Talks on Cost-of-Living Pressures Linked to Iran Conflict
Starmer Convenes Urgent Talks on Cost-of-Living Pressures Linked to Iran Conflict
UK Investors Eye Bargain Shares Ahead of ISA Deadline Amid Market Volatility
UK Investors Eye Bargain Shares Ahead of ISA Deadline Amid Market Volatility
Northern Lights Expected Over UK Skies Tonight Amid Strong Solar Activity
UK Condemns Iran Missile Strike and Warns Against Threats to British Personnel
UK Warns of Global Flight Disruptions as Iran Conflict Escalates Under Trump’s Leadership
UK Condemns Iran After Missile Strike Targets Strategic Diego Garcia Base
Deadly Meningitis Outbreak in UK Reinforces Urgency of Vaccination Campaigns
Iran Launches Long-Range Missile Strike on Remote US-UK Base, Signaling Expanded Reach
Iran Launches Long-Range Missile Strike on Remote US-UK Base, Signaling Expanded Reach
UK Rules Out Cyprus Base Role in Joint US Self-Defence Framework
UK Ends Hereditary Peerage Rights in Parliament in Historic Constitutional Reform
Lord Walney Warns of Expanding Iranian Influence Networks Within the United Kingdom
Iranian National Among Two Arrested After Attempt to Access UK Nuclear Submarine Base
Deregulation, Artificial Intelligence, and Fraud Laws Reshape UK Financial Services Landscape
UK Considers Lower Speed Limits to Reduce Fuel Use Amid Escalating Energy Crisis
UK Borrowing Costs Surge to Post-Crisis High as Markets React to Inflation and War Risks
UK Government Prepares Emergency Economic Measures as Iran Conflict Fuels Financial Risks
Meningitis B Outbreak in the UK Raises Urgent Health Warnings as Cases Surge
Iran Issues Stark Warning to Britain Over US Base Access Amid Expanding Conflict
United Kingdom Authorizes US Strikes from British Bases as Iran Threatens Key Shipping Routes
Reform UK Suspends Scottish Candidate Following Financial Misconduct Allegations
Apple issues an unusual warning: this is how your iPhone can be hacked without you doing anything
UK and Nigeria Reach Agreement to Accelerate Return of Irregular Migrants
UK Sets New Aid Priorities Following Significant Budget Reductions
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
UK Plans 50% Steel Tariffs in Bold Move to Protect Domestic Industry
Iran Conflict Sends Shockwaves Through UK Economy as Energy Costs and Trade Risks Surge
UK Health Officials Warn Kent Meningitis Outbreak Still Active as Cases Continue to Rise
UK Climate Progress Faces Scrutiny Over Reliance on Carbon Accounting Methods
UK Deploys Advisers to United States to Shape Plan for Reopening Strait of Hormuz
Amazon Bets on AI-Driven Alexa Upgrade to Revive UK Smart Speaker Market
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
GB News Faces Regulatory Complaints Over On-Air Remarks on ‘Genocide’ Claims
UK Signals Expanded Support for Gulf Allies as Iranian Attacks Intensify Regional Threats
×