UK Prime Minister warns government’s first budget to be challenging
Date
8/28/2024 4:14:16 AM
(MENAFN) British Prime Minister Keir Starmer has issued a stark warning that the UK Labour government's first budget, scheduled for the end of October, will be challenging. In a speech delivered in the Downing Street gardens ahead of the parliament's opening on Tuesday, Starmer criticized the "economic black hole" left behind by the Conservatives. He emphasized the gravity of the situation, stating, "I will be honest with you, the budget that will be presented in October will be painful."
Starmer underscored that the government has limited options given the current circumstances. He mentioned that those who are most capable of shouldering responsibility will bear the brunt of the burden, alluding to the upcoming cuts in public spending and tax increases slated for October 30. The Labour Party had centered its election campaign on addressing the country's economic challenges and promised to manage public finances with rigor, a commitment that now necessitates taking tough measures.
The prime minister further warned that the government might have to implement even more stringent actions, following accusations made by Chancellor Rachel Reeves in July that the Conservatives had "covered up" a budget deficit of £22 billion (€26 billion). Starmer acknowledged that the financial situation is "worse than we imagined," a reality that was not fully anticipated by the Office for Budget Responsibility (OBR).
Starmer also pointed to a broader crisis, describing the inheritance of a "black hole" in both the economy and social issues, including the recent riots in England and Northern Ireland. These far-right riots, which erupted in August following the tragic stabbing of three girls during a dance class in Southport, have added to the country's social and economic challenges.
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