Starmer warns the budget is ‘going to be painful’ and there could be tax hikes

Sir Keir Starmer has issued a warning on Tuesday that there could be tax hikes and the October budget is “going to be painful.”

Starmer has said there will also be spending as “things are worse” than what “we ever imagined.”

Speaking from the rose garden at Downing Street Starmer suggested that the highest earners could end paying more in tax, he said, “Those with the broadest shoulders should bear the heavier burden.

“Those who made the mess should have to do their bit to clean it up.”

He added, “I will be honest with you, there is a budget coming in October and it’s going to be painful.”

“Just as when I responded to the riots, I’ll have to turn to the country and make big asks of you as well to accept short-term pain for long-term good. The difficult trade-off for the genuine solution.”

He said that when Labour took power, they discovered things are far “worse than we ever imagined” after they found a “£22billion black hole in the public finances.”

Starmer said that the public will have to accept the “short- term pain for long-term good.”

“It’s not the position I want to be in, but we have to end the politics of the easy answer that solves nothing.

“I said change would not happen overnight.

“When there is a deep rot at the heart of a structure, you can’t just cover it up… you have to overhaul the entire thing, tackle it at root. Even if it’s hard work or takes more time.”

Starmer confirmed that Labour will not increase income tax, VAT or national insurance for working people, however with regard to other taxes nothing can be ruled out.

Starmer added, “In the first few weeks we discovered a £22billion black hole in the public finances and before anyone says ‘Oh this is just performative or playing politics’ let’s remember the OBR (Office for Budget Responsibility) did not know about it, they wrote a letter setting that out.

“They didn’t know because the last government hid it and even last Wednesday, just last Wednesday, we found out that thanks to the last government’s recklessness we borrowed almost £5 billion more than the OBR expected in the last three months alone. That’s not performative, that’s fact.”