(L-R): Keir Starmer and Rachel Reeves (pictured), prime minster and chancellor of the exchequer . Credit Keir Starmer Flickr
Prime Minister Keir Starmer will pledge to implement measures in this week’s Autumn Budget (30 October) that will stimulate private investment and growth as the Labour government vows to “fix the foundations” of the UK in its first major fiscal event.
In a speech set to be delivered today (28 October), the prime minister will say: "On competition, we are stripping out the needless regulation that holds back growth and private investment".
According to Starmer, "everyone in the country will benefit from this", given that the Budget will represent "an economic plan that will change the long-term trajectory on British growth for the better".
While he will vow to focus the Budget on a three-word mantra of "stability, investment, reform", in order to fix the NHS and "protect working people's payslips", Starmer is also set to emphasise the harsh economic realities that the UK currently faces.
The Labour leader will stress the need to "embrace the harsh light of fiscal reality" to unite the country behind a common vision of its future.
Both he and Chancellor Rachel Reeves have frequently reiterated the challenges that lie ahead, with Starmer expected to echo that sentiment once more today. "These are unprecedented circumstances," the prime minister will argue.
"This is not 1997, when the economy was decent but public services were on their knees. And it is not 2010, where public services were strong, but the public finances were weak," he will add.
A raft of changes have already been rumoured to be included in Wednesday's Budget to address the current fiscal state of the UK and patch the estimated £22-40bn ‘black hole'.
Labour's first fiscal event since 2010 is expected to include tax rises and extra borrowing to fund public services.
Coupled with this, Reeves confirmed last week that she will tweak the UK's fiscal rules to allow up to £70bn more borrowing over the next five years, while ensuring that day-to-day spending is matched by revenues.
These changes, alongside the additional details that will be revealed in Wednesday's Budget, will mean that "everyone can wake up on Thursday (31 October) and understand that a new future is being built, a better future", the prime minister will conclude in a speech later today.
