Prime Minister Sir Keir Starmer is set to reassure the nation that there is “light at the end of this tunnel”, urging the public to put up with short-term financial hardship in exchange for long-term prosperity.
In his first speech to the Labour Party conference since taking office, Johnson will stress the need for tough economic decisions to address the “black hole” in public finances left by the Conservatives, saying tax cuts are not on the horizon until these issues are resolved.
Looking ahead, Starmer will pledge that economic stability will deliver tangible benefits over the next five years, including higher growth, shorter NHS waiting lists, stronger borders and a cleaner energy system. This positive message is intended to dispel criticism, even from within his own government, that his rhetoric since becoming prime minister has been too pessimistic.
“Short-term pain for long-term gain”
Starmer’s speech comes as the government faces a backlash over the cancellation of winter fuel payments for 10 million pensioners, a move that was booed at the Labour conference. He will acknowledge the difficulty of the current situation, but argue that the sacrifices made today will ultimately lead to a safer and more prosperous future for the country.
Starmer is expected to say: “The politics of national renewal are collective. This will be difficult in the short term, but in the long term it is the right thing to do for our country. If we take the tough long-term decisions now – higher economic growth, shorter hospital waiting lists, safer streets, stronger borders, cleaner British energy – we will get to that light at the end of this tunnel much faster.”
His speech is likely to pave the way for Labour’s first budget on October 30, which is expected to include tax rises and spending cuts, echoing previous warnings from Chancellor Rachel Reeves. While Labour has ruled out increases to income tax, national insurance, VAT or corporation tax, other areas such as capital gains tax and inheritance tax could see changes.
Tackling the “Financial Black Hole”
Starmer will highlight the £22bn deficit he inherited from the previous government, warning that fiscal prudence is needed to prevent further damage to the economy. He will say: “It’s not just the fiscal black hole the Conservatives have left behind, it’s our failing public services. Just because we want low taxes and good public services doesn’t mean we can ignore the need to fund policies properly.”
The prime minister’s remarks are expected to include a defence of Labour’s economic strategy, describing it as the only responsible path forward after years of what he describes as Conservative economic mismanagement. It comes as Starmer faces falling approval ratings and voter disillusionment, with some accusing him of focusing too much on the mistakes of the previous government rather than offering hope for the future.