Keir Starmer is ‘the new George Osborne’ says John McDonnell

Former Labour shadow chancellor attacks plan to curb welfare fraud and says the prime minister is becoming a ‘replica’ of the former Tory chancellor

(Getty Images)

Sir Keir Starmer has become a “replica of George Osborne” by refusing to “end austerity”, former Labour shadow chancellor John McDonnell said on Tuesday.

Mr McDonnell criticised the prime minister after reports that he will use his speech to the Labour conference to warn of “tough decisions” facing the government.

Former shadow chancellor John McDonnell is among the seven MPs suspended from the parliamentary Labour Party (PA Archive)

The MP for Hayes and Harlington, who was stripped of the Labour whip after rebelling against the government to call for the removal of the two-child benefit cap, said: “I don’t say this lightly but if you close your eyes and listen to the language being used it is almost like George Osborne speaking again in 2010”.

Sir Keir is expected to announce new moves to tackle benefit fraud, while promising a “decade of renewal” that offers “light at the end of the tunnel” for the British public.

But Mr McDonnell, a close ally of Jeremy Corbyn, said the prime minister was taking the same approach as Mr Osborne, who served as chancellor in David Cameron’s Conservative government, and who introduced controversial spending cuts which became known as austerity measures.

“When you hear politicians talking about tough choices or painful decisions and then you hear some of the rhetoric about fraud and social security, literally that is a replica of a George Osborne speech in 2010”, Mr McDonnell told the BBC Radio Four ‘Today’ programme.

“I don’t believe what we are hearing this week will inspire people… or end austerity.”

The remarks came as the Chancellor of the Duchy of Lancaster, Pat McFadden, failed to rule out cuts to welfare and benefits in next month’s Budget.

Asked on Sky News if chancellor Rachel Reeves is considering cuts to the welfare budget, Mr McFadden said: “She won’t start from that point of view, but she will start from saying there are too many people on long-term sickness benefits.

“What can we do to get people back into work? There is some fraud in the system too, which we’re going to act on.”

But speaking on the main stage of the party conference on Monday, Ms Reeves promised there would be “no return to austerity” under Labour.

She described austerity policies under the Conservatives as a “destructive choice for our public services – and for investment and growth too.”

But she has repeatedly warned that further tough choices will have to be made at October’s Budget, which are expected to go beyond the cut to winter fuel payments.

In his main stage speech on Tuesday, Sir Keir is expected to announce that welfare fraudsters will be dealt with faster under new legislation expected to save the taxpayer £1.6 billion over the next five years.

The prime minister is expected to promise to “leave no stone unturned” as his government seeks to rebuild our public services.

Part of his speech will include a new Fraud, Error and Debt Bill to modernise the Department for Work and Pensions, allowing it to recover money lost to fraud while protecting vulnerable claimants from mounting debts.

It will also contain powers to help officials keep up with more sophisticated fraud, as Labour said fraud and error in the social security system cost the country £10 billion a year.

Alongside the Bill, the prime minister is expected to announce plans for wider welfare reform to help get people back into work, with details to be unveiled later this year.