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Starmer promises to protect public services from future austerity cuts

The Prime Minsiter said his Government was not ‘going down the road of austerity’, in a possible signal of future money for public services.

David Lynch
Saturday 21 September 2024 21:48 BST
Mayor of London Sadiq Khan, Prime Minister Sir Keir Starmer and Dawn Butler, MP for Brent East (Stefan Rousseau/ PA)
Mayor of London Sadiq Khan, Prime Minister Sir Keir Starmer and Dawn Butler, MP for Brent East (Stefan Rousseau/ PA) (PA Wire)

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Sir Keir Starmer has promised to protect public services from swingeing cuts, as he made a bid to move on from rows over donations and strife at No 10, after arriving at the Labour Party conference.

The Prime Minister said his Government was not “going down the road of austerity”, like that pursued by David Cameron’s administration.

It may signal that the Treasury has found new ways to free up funds, after the halt on spending to address a £22bn black hole in the public finances announced not long after Labour came to power.

In a series of wide-ranging interviews with Labour-friendly newspapers ahead of the party’s Liverpool gathering, Sir Keir also acknowledged the damaging impact of the row over clothing donations he had received, and of internal fighting within his Downing Street operation.

We are still feeling the damage even now. So we are not going down the road of austerity

Prime Minister Sir Keir Starmer

Speaking to the Sunday Mirror newspaper on the eve of the conference, Sir Keir said austerity-era cuts did a “huge amount of damage to our public services”, drawing on his experience as director of public prosecutions.

“We are still feeling the damage even now. So we are not going down the road of austerity,” he said.

In a bid to counter suggestions he had only offered doom and gloom since coming to power, the Observer newspaper reported that Sir Keir now intends to set out a more positive vision for the future under Labour.

“I want to answer the ‘why’ question as well as the ‘what’ question.

“We do need to say why and explain and set out and describe the better Britain that this ladders up to,” he told the newspaper.

An early conference signal of this optimistic intent came as he told a Saturday night reception in Liverpool that he wanted his Government to be compared with Clement Attlee’s transformational post-war administration.

The 1945 Labour government set up the NHS and helped rebuild the UK after the devastation of the Second World War.

But in the present, Sir Keir faces lingering anger over the decision to strip winter fuel payments from about 10 million pensioners, with union calls at conference to reverse the move.

Labour’s largest union backer, Unite the Union, is pushing for changes at the conference, including reversing the cuts to the winter fuel allowance.

The union is also calling on Chancellor Rachel Reeves to introduce a wealth tax on the top 1%, an “excess profits” tax, change capital gains tax rates to match income tax, and make investment income liable to national insurance.

With the conference taking place against a backdrop of rising tensions in the Middle East, hundreds of pro-Palestinian protesters gathered on Liverpool’s waterfront to coincide with Sir Keir’s arrival at the event on Saturday.

There is also consternation among the Labour movement about his and his wife Lady Victoria Starmer’s acceptance of gifts, including clothing, from prominent Labour donor and peer Lord Alli.

Sir Keir, Chancellor Rachel Reeves, and Deputy Prime Minister Angela Rayner have said they will not accept such donations in the future.

The announcement came after donations “in kind” listed in the publicly available registers of interest for both Ms Reeves and Ms Rayner were also disclosed to be for clothing.

The row has drawn criticism from Labour’s political opponents, who have contrasted the lavish gifts with the Government’s decision to limit the winter fuel payment for pensioners.

Sir Keir dismissed suggestions the row would hurt his popularity in the long-run however, and said voters would judge him on his record of delivery.

“I think in the end, that is what people will judge me on,” he told the Mirror.

Sir Keir is also grappling with an internal row within his No 10 operation, after reports of tensions between chief of staff Sue Gray and senior officials.

The leaked disclosure that Ms Gray is paid £170,000, some £3,000 more than the Prime Minister, has added to the rumours of behind-the-scenes difficulties in No 10.

He acknowledged the destabilising nature of the row, telling the Observer: “It is my job to do something about that and I accept that responsibility. And that just damages everybody.”

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