Keir Starmer says Budget ‘papers over cracks’ and ‘defers’ insecurity for millions

Labour leader says government has failed to ‘understand what went wrong in the last decade’

(PA)

Sir Keir Starmer has claimed the Budget “papers over the cracks” of the problems facing Britain in the wake of the Covid pandemic, as he suggested insecurity is being “deferred” for millions with a temporary extension of the universal credit uplift.

Speaking moments after Rishi Sunak unveiled the government’s economic plans, the Labour leader accused the government of ignoring the crisis facing social care, telling MPs: “Although the chancellor spoke for almost an hour, we heard nothing about the long-term plan to fix social care.”

“We needed a Budget to fix the foundations of our economy, to reward our key workers, to protect the NHS and to build a more secure and prosperous economy for the future,” Sir Keir added.

“Instead what we got was a Budget that papered over the cracks rather than rebuilding the foundations — a Budget that shows the government doesn’t understand what went wrong in the last decade or what’s needed in the next.”

Echoing his comments on social care, the former Conservative health secretary Jeremy Hunt also questioned the lack of help, suggesting. there was “little hope” for the sector which had been “bruised and demoralised after [the] most devastating year in its history”.

"Understand money is difficult to commit at this stage, but they desperately need to know a plan is coming," he said.

On welfare, Sir Keir said the chancellor had to be “dragged kicking and screaming” to announce a six month extension to the £20 per week increase in universal credit payments — introduced at the onset of the pandemic to aid low-paid families and unemployed people.

While the decision has been welcomed, many campaigners have highlighted concerns that when the support expires in September — coinciding with the end of the furlough scheme — the extra £20 per week will remain vital lifeline.

Hinting at the political battle looming over the future of the welfare payments, the Labour leader accused Mr Sunak of “once again deferring the problem”.

And he said: “As a result, insecurity and the threat of losing a £1,000 a year still hang over six million families. We would keep the uplift until a new, fairer system could be put in place.”

The Labour leader also welcomed the “long-overdue” commitments to extend the coronavirus furlough scheme, the business rates relief for business and the extended VAT cut for the hospitality and tourism sectors as national restrictions are eased.

However, he said: "There is no excuse for holding the announcement of this support back until today – and, of course, we will look at the detail.”