Starmer Warns of Tough Choices Ahead, Promises ‘Better Days’ After Budget

Prime Minister Sir Keir Starmer has delivered a candid speech ahead of Wednesday’s Budget, preparing the public for what he called the “harsh light of fiscal reality.” While acknowledging the need for difficult decisions, he expressed optimism for the future, saying, “better days are ahead.”

Starmer emphasized his commitment to tackling economic challenges head-on, rejecting the notion that lower taxes and fully functioning public services can always coexist. His comments set the stage for what is expected to be a tax-raising Budget, although details remain scarce.

One measure he confirmed is a shift in the popular £2 bus fare cap in England, which will be replaced by a £3 cap and funded through 2025. He also unveiled a £240 million initiative aimed at encouraging people to return to work.

Facing criticism from the Conservative Party over potential broken tax promises, Starmer’s government is grappling with accusations of backtracking on Labour’s general election manifesto, which explicitly ruled out increases in VAT, National Insurance, or income tax. The upcoming Budget may include a rise in National Insurance contributions (NICs) paid by employers and an extension of the income tax threshold freeze, drawing scrutiny over whether Labour is sticking to its pledge not to raise taxes on working people.

In Birmingham, Starmer sought to clarify his stance, stating, “the working people of this country know exactly who they are,” and pledging to protect their payslips. He hinted that tax rises would target those with “broader shoulders,” implying that wealthier individuals and entities could bear a heavier burden.

While acknowledging the difficulty of higher taxes, Starmer underscored the need to be “realistic about where we are as a country,” suggesting that the Budget will require both sacrifice and tough decisions, balanced by a vision for a stronger future.