Labour stands for ‘sound currency’, Starmer tells party meeting

Labour leader Sir Keir Starmer will tell British voters in a conference speech on Tuesday that his party supports “sound money” as he tries to take over the mantle of economic power from the ruling Conservatives.

He will criticise the tax-cut, high-borrowing mini-budget announced last week by Chancellor of the Exchequer Quasi Kwaten, which shocked markets and pushed the pound higher all-time low on Monday. The scheme sets out a series of tax cuts, including the removal of the top 45% tax rate that applies to income over £150,000.

“There’s no precedent for what we’ve seen from the administration over the past few days,” Starmer would say. “They’ve lost control of the UK economy – for what? Tax cuts for the richest 1% of our society.”

Starmer will claim Labour is the “centre party” and refer to it as “the political wing of the British people”, to borrow a phrase from former Labour leader Sir Tony Blair.

On Monday, Labour’s shadow chancellor, Rachel Reeves, pledged that if in power, the party would restore the top income tax bracket and use the proceeds to increase the number of doctors and nurses in the NHS.

She told delegates at the Liverpool meeting that a Labour government would use the £2bn raised by re-forming the top bands to tackle the NHS’ dire staffing crisis.

The money will fund the training of more than 5,000 new health visitors, create another 10,000 nursing and midwifery positions each year, and double the number of medical students.

She accused new Prime Minister Liz Strath of abandoning the previous Conservative government’s “escalation” agenda aimed at rebalancing the economy in London and the South East. Instead, Truss pursues “trickle-down economics,” in which taxes are adjusted to help the wealthy generate broader economic growth. “The idea has been tried, tested and failed,” she said.

Reeves said as chancellor she would tightly rein in Britain’s public finances, in contrast to last week’s announcement of more borrowing than any budget since 1972 amid already high inflation and rising interest rates Kwarteng in stark contrast.

Investors’ so-called mini-budget rattles markets Sterling plummets and gilt yields soar“The message from the financial markets on Friday was clear, and this morning the message was even more pronounced: the pound fell. This means that as the cost of imports rises, prices will rise,” she said.

Reeves said the Labour government would ensure all its policies were “well-calculated and adequately funded” as she accused the Conservatives of breaking their own fiscal rules 10 times in their 12 years in power.

The shadow chancellor slammed the Conservatives for “piling up more than £50bn a year on national debt because of their reckless decision to put all their costs on borrowing”.

The Labour government will also reverse Kwarteng’s £17bn-a-year corporate tax cut, but will retain two other big cuts from the chancellor: a £13bn cut to National Insurance and a cut in the basic income tax rate from 1p to 19p in April next year, worth £5 billion.

One of the biggest differences in economic policy between the government and the opposition right now is the size of the settlement. energy crisis.

The government said on Friday its plan to cap energy prices would cost £60bn in just six months. The bailout – made up of £31bn of households and £29bn of businesses – will be largely paid for by borrowing heavily.

Labour’s energy rescue package, announced in August, cost just £29bn over the same period as it only targeted households. The party said it would be funded by expanding the existing energy windfall tax, scrapping the £400 universal government payment this autumn and lowering national debt repayments, as the intervention would lower inflation.

Labour will only provide a £1bn support package for businesses targeting energy-intensive sectors and a further £1bn reduction in business tax rates for small companies – paid for by a £2bn increase in the digital services tax.

Source link