LONDON – Keir Starmer insisted the budget was not ‘misleading’ yesterday as he launched a desperate bid to shore up his chancellor.
The PM told a press conference that austerity or more borrowing were the only other options to imposing massive tax hikes as he defended Rachel Reeves’ fiscal package.
The claim will fuel fury after the OBR watchdog revealed it privately told ministers months ago that they had not detected any black hole in the public finances. In fact, a large chunk of the extra £30 billion raised is going on extra benefits costs.
Sir Keir begged angry Labour MPs to stick with his ‘long-term plan’ after a weekend of brutal recriminations against Reeves for repeatedly talking up a fiscal crisis to soften Britons for her tax raid.
Effectively tying his fate to that of his chancellor, the premier said the government had now passed through the ‘narrowest part of the tunnel’.
‘‘Our choices were fair, they were necessary and they were fundamentally good for growth,’’ the premier said, arguing that the government was ‘always going to have to raise revenue’.
In an effort to blunt criticism that the monster tax rises are being blown on benefits, Sir Keir vowed a new crackdown on welfare. However, he refused to commit to spending being curbed before the next election in 2029.
Even ministers are said to be furious at being kept in the dark over the OBR forecasts, with Reeves confirming yesterday morning the Cabinet was not told. The chancellor is facing a twin threat of probes from No.10’s standards watchdog and the financial regulator.
Sir Keir repeatedly referred to the £16 billion cost of a productivity downgrade, without mentioning that was completely offset by higher tax revenue and inflation estimates. ‘‘There was no misleading, and I simply don’t accept, and I was receiving the numbers, that being told that the OBR productivity review means you’ve got £16 billion less than you would otherwise have had shows that you’ve got an easy starting point.’’
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