{"id":1353,"date":"2023-12-04T03:42:05","date_gmt":"2023-12-04T03:42:05","guid":{"rendered":"https:\/\/260web.com\/news\/labour-wont-turn-on-spending-taps-says-starmer\/"},"modified":"2023-12-04T03:42:05","modified_gmt":"2023-12-04T03:42:05","slug":"labour-wont-turn-on-spending-taps-says-starmer","status":"publish","type":"post","link":"https:\/\/260web.com\/news\/labour-wont-turn-on-spending-taps-says-starmer\/","title":{"rendered":"‘Labour won’t turn on spending taps’ says Starmer"},"content":{"rendered":"

‘Labour won’t turn on spending taps’ says Starmer<\/p>\n

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By Michael Race<\/div>\n
Business reporter, BBC News<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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Sir Keir Starmer is to warn that the UK will face “huge constraints” on public spending if his party win the next General Election.<\/b><\/p>\n<\/div>\n<\/div>\n

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On Monday, he will say anyone expecting an incoming Labour government “to quickly turn on the spending taps is going to be disappointed”.<\/p>\n<\/div>\n<\/div>\n

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Growing the economy is set to be a battleground for both Labour and the Conservatives at the next election.<\/p>\n<\/div>\n<\/div>\n

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The Conservatives claim Labour’s borrowing plan would raise taxes.<\/p>\n<\/div>\n<\/div>\n

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Rishi Sunak, the prime minister, has made economic growth one of his key pledges.<\/p>\n<\/div>\n<\/div>\n

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The cost of living in the UK has put the economy at the centre of political debate as inflation and high interest rates put pressure on household budgets.<\/p>\n<\/div>\n<\/div>\n

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The UK has not slipped into recession but there have been concerns over weak growth. <\/p>\n<\/div>\n<\/div>\n

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The Bank of England’s governor, Andrew Bailey, said last week that productivity rates in the UK “concern me a lot”.<\/p>\n<\/div>\n<\/div>\n

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In a speech to economists and think-tanks later on Monday, Sir Keir will say economic growth “will have to become Labour’s obsession if we are to turn around the economy”. <\/p>\n<\/div>\n<\/div>\n

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But he will argue that decisions taken from the government and previous Conservative administrations for the past 13 years “will constrain what a future Labour government can do”.<\/p>\n<\/div>\n<\/div>\n

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“The comparison between 2010 and today is instructive,” the Labour leader will say.<\/p>\n<\/div>\n<\/div>\n

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“Now, debt and interest rates are much higher. Britain’s standing is diminished. Growth is stagnant and public services are on their knees.”<\/p>\n<\/div>\n<\/div>\n

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“Taxes are higher than at any time since the war, none of which was true in 2010. Never before has a British government asked its people to pay so much, for so little.”<\/p>\n<\/div>\n<\/div>\n

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His comments will come after his party denied claims it could further water down its flagship green prosperity plan. <\/p>\n<\/div>\n<\/div>\n

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A senior source had suggested to the BBC that the level of investment previously promised – of \u00a328bn a year – might never be reached.<\/p>\n<\/div>\n<\/div>\n

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In June Rachel Reeves, the shadow chancellor, watered the pledge down. Senior source in the Labour leader’s office said the decision was made because of the state of the public finances. <\/p>\n<\/div>\n<\/div>\n

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However, a Conservative spokesman said Labour’s policy “presents a major risk” to the British economy at a time when the cost of borrowing is “so high”.<\/p>\n<\/div>\n<\/div>\n

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Richard Holden, the Conservative party chairman, said: “The largest ‘constraint’ to growing the economy would be Labour’s \u00a328bn a year borrowing plan – which independent economists warn would see inflation, interest rates and people’s taxes rise”.<\/p>\n<\/div>\n<\/div>\n

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