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Prime Minister Sir Keir Starmer will reassure the nation that there is ‘light at the end of this tunnel’, urging the public to endure short-term financial hardship in exchange for long-term prosperity.
In his first speech to the Labor conference since taking office, he will outline the need for tough economic decisions to tackle the ‘black hole’ in public finances left by the Conservatives, saying tax cuts are not on the horizon until these issues have been resolved. .
Looking to the future, Starmer will promise that stabilizing the economy will deliver tangible benefits over the next five years, including higher growth, shorter NHS waiting lists, stronger borders and a cleaner energy system. This positive message is intended to dispel criticism, even from his own Cabinet, that his rhetoric since becoming Prime Minister has been too pessimistic.
‘Short-term pain for long-term gain’
Starmer’s speech comes as the government faces backlash over the abolition of winter fuel payments for 10 million pensioners, a move that sparked boos at the Labor conference. He will acknowledge the difficulty of the current situation, but argue that the sacrifices made today will ultimately lead to a more secure and prosperous future for the country.
“The politics of national renewal is collective,” Starmer is expected to say. “This will be difficult in the short term, but in the long term this is the right choice for our country. If we make tough, long-term decisions now – higher economic growth, shorter hospital waiting lists, safer streets, stronger borders, clean British energy – we will get to that light at the end of this tunnel much faster.”
His speech is likely to set the stage for the Labor government’s first budget on October 30, where tax rises and spending cuts are expected, following previous warnings from Chancellor Rachel Reeves. While Labor has ruled out an increase in income tax, national insurance, VAT or corporation tax, other areas such as capital gains tax and inheritance tax could see adjustments.
Tackling the ‘financial black hole’
Starmer will highlight the £22 billion budget deficit he inherited from the previous government, warning that financial prudence is essential to avoid further damage to the economy. “It’s not just the financial black hole the Tories have left behind,” he will say, “but also our decimated public services. Just because we want low taxes and good public services doesn’t mean we can ignore the need for good policy financing.”
The Prime Minister’s comments are expected to include a defense of Labour’s economic strategy, positioning it as the only responsible way forward after years of what he describes as Conservative economic mismanagement. This comes as Starmer faces declining approval ratings and disillusionment among voters, with some accusing him of focusing too heavily on the previous government’s mistakes rather than offering hope for the future.