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Watch: Starmer warns Britain faces ‘unprecedented challenges’ ahead of Budget

Holly Patrick
Monday 28 October 2024 15:30 GMT
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Watch as Sir Keir Starmer warned that Britain faces "unprecedented challenges" in a speech on Monday, 28 October, ahead of Labour's first Budget for 14 years.

The prime minister's speech in the West Midlands — a region in which Labour swept away the Tories in the general election — came amid widespread speculation that Rachel Reeves is set to raise taxes by between £25 billion to £40 billion.

Sir Keir said that the country faces unprecedented challenges after the last government covered up the state of the public finances and crumbling public services:

“We have to be realistic about where we are as a country. This is not 1997, when the economy was decent but public services were on their knees. And it’s not 2010, where public services were strong, but the public finances were weak. These are unprecedented circumstances.

“And that’s before we even get to the long-term challenges ignored for fourteen years. An economy riddled with weakness on productivity and investment. A state that needs urgent modernisation to face down the challenge of a volatile world."

The chancellor is now expected to increase employer contributions to national insurance by 2 per cent despite promising not to increase national insurance in the Budget.

There are also expected to be hikes in inheritance tax and capital gains. Ms Reeves has pledged not to increase “taxes on working people” including income tax, employee contributions to national insurance or VAT.

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