Would You like a feature Interview?
All Interviews are 100% FREE of Charge
Sir Keir Starmer has been warned by one of his senior MPs that Labor should not accept budget tax cuts implemented by the Tory government.
Stella Creasy, Labor MP for Walthamstow, urged party leaders not to stick to Tory tax and spending plans and instead set out long-term plans for public investment.
Prime Minister Jeremy Hunt is expected to announce a 2p cut to national insurance, worth around £450 for the average worker, in Wednesday’s Budget.
Lord Keir and Shadow Chancellor Rachel Reeves said there were no plans to announce any tax increases beyond those already identified by the party. These include eliminating non-national tax loopholes and abolishing the value-added tax exemption for private schools.
This means that if Labor wins the next election, it could inherit the personal tax cuts introduced by the Conservative government, which would force it to cut public spending in other areas.
Ms Creasy, a former shadow minister and deputy leadership candidate, is a leading supporter of the Labor Party and is largely seen as representing the party’s centrist wing, who warned that “onerous tax cuts” would be “irresponsible”.
He argued that “tax cuts provide temporary reprieve” and prioritized long-term savings and investment projects over “short-term” benefits.
In an opinion article by I, He said: “Despite warnings from the IMF and others to pursue tax cuts, the Conservative Party’s economic proposals remain centered on Liz Truss’s views on the option for the UK to become the bargain bin of the global economy. It’s evolving,” he said.
The International Monetary Fund (IMF) has warned against further tax cuts in the UK, saying maintaining public services and investment would require more spending than reflected in current plans.
Mr Creasy said Labour’s desire to “rebuild from the bottom up” required “long-term commitment” rather than short-term vote-picking.
“Social justice is not an inevitable outcome for Britain’s future simply because we beat the Conservatives at the voting booth,” they write.
“Deep down, the people know that tax cuts are only a temporary reprieve from the misery of broken public services and an uncertain world.”
He called on Starmer to commit to rebuilding through “long-term public and private infrastructure rather than short-term tax cuts”.
The Labor leader should also pledge to “reset” Britain’s relationship with its international allies “starting in Europe”.
And the party must pledge “reforms that not only help households but also achieve sustainable public finances.”
“To reduce inequality, Labor should also tackle financial regulations that make personal borrowing a worthwhile investment for some, but a determinant of poverty for others,” the authors wrote. said.
He added: “Keir Starmer was right to say that this country has had ‘band-aid’ politics for too long. This is a triumphant moment for Labor as the Conservatives struggle both electorally and economically. There is a possibility that
“For that to last, Labor needs to win the arguments that will ensure public support for the period needed to make change. A future worth fighting for is free from fantasy and fatalism. We need less and more realistic talk.”