Will things get worse like Keir Starmer says?

Published On Aug 30, 2024, 5:25 PM

Prime Minister Keir Starmer has warned of significant financial challenges facing the UK government, indicating that the upcoming budget on October 30 may include painful tax increases and spending cuts. The Labour Party has identified a 'black hole' in public finances, estimating a shortfall of £22 billion due to unforeseen expenses, notably higher public sector wages. Starmer emphasized that the current situation is worse than expected, potentially forcing unpopular decisions that might include tax hikes, particularly affecting the wealthy and targeting areas such as capital gains and inheritance taxes, while ruling out increases on major taxes like income and VAT.