Premier warns new UK budget will address tough fiscal realities

In a speech before Wednesday's announcement, Sir Keir Starmer stated that the Budget will reflect the "harsh truths of financial circumstances," but he also emphasized that "brighter days are on the horizon," News.Az reports citing BBC .

Seeking to justify what is expected to be a tax-raising Budget, the prime minister said he would "run towards" challenges and would not "continue the pretence that you can always have lower taxes and that your public services will run properly".

Although he did not set out many details of the Budget, he did say the £2 bus fare cap would be replaced by a £3 cap, funded until the end of 2025.

He also announced £240m aimed at getting people back to work.

The Conservatives have accused Sir Keir of breaking Labour's tax promises.

In its general election manifesto, Labour promised not to increase taxes on working people - explicitly ruling out a rise in VAT, National Insurance or income tax.

However, the pledge has recently come under renewed crutiny with the party's first Budget in 15 years expected to contain measures which could see taxes go up.

This includes an anticipated rise in the National Insurance (NICs) rate paid by employers, which some claim breaks Labour's manifesto pledge, and an expected extension of the freeze on income tax thresholds beyond 2028.

Ministers have come under pressure to spell out who would be covered by its promise not to raise taxes on working people.

At a speech in Birmingham, Sir Keir did not shy away from using the phrase, telling the audience "the working people of this country know exactly who they are".

He added that he would "protect the payslips of working people" who were "the golden thread" of the government's agenda.

He did not spell out what tax rises might be in the Budget, but repeatedly emphasised the need for "tough decisions" and spoke of "broader shoulders" carrying a "higher burden on tax".

"Nobody wants higher taxes, just like nobody wants public spending cuts.

"But we have to be realistic about where we are as a country.

"This is not 1997, when the economy was decent but public services were on their knees. And it’s not 2010, where public services were strong, but the public finances were weak. We have to deal with both sides of that coin."

Anticipating criticism following Wednesday's Budget, Sir Keir said those who challenged the government's approach should set out which taxes they would raise or which public services they would cut.

"The time is long overdue for politicians in this country, to level with you, honestly about the trade-offs this country faces. To stop insulting your intelligence with the chicanery of easy answers."

He said his government's Budget would "prevent devastating austerity in our public services and prevent a disastrous path for our public finances.

"That is the reality of what would happen if we’d stuck to Tory spending plans."

News.Az