KEIR Starmer has insisted people are getting better off under Labour – despite rising energy bills and warnings of looming tax hikes.
In an interview on Wednesday, the Prime Minister insisted that his Government was “bearing down on costs” and putting more money into people’s pockets.
His claims come despite the latest figures showing that household disposable income is plunging under Labour, with people’s spending money after tax falling in the first quarter of this year by 1%, the steepest fall in two years.
The UK Government has also been warned it must increase tax and reduce spending if it wants to hit Rachel Reeves’s self-imposed fiscal rules – putting Labour on course to break an election pledge not to increase tax on “working people”, with ministers emphatically ruling out a wealth tax.
Asked about whether Labour were set to hike taxes, Starmer would not be drawn on Budget speculation, with the Chancellor (above) preparing to unveil her economic plans in the autumn.
But he said: “The focus will be living standards, so that we will build on what we’ve done in the first year of this Government.
“We’ve stabilised the economy. That means interest rates have been cut now four times.
“For anybody watching this on a mortgage, that makes a huge difference on a monthly basis to how much they pay.
“In the first year, we’ve raised wages as well, both in the private sector plus the minimum wage, which means people have got a bit more money coming into their pocket, and so at this stage that will be set out in the Budget, but the focus will very much be on living standards and making sure people feel better off.”
Starmer added: “What’s really important is that I’m very clear about our focus, which will be on living standards and making sure that people feel better-off, partly because more money is coming into their pocket in the first place through better wages, and partly because we’re bearing down on costs like mortgages and other costs to everyday families.”
Households are also feeling the pinch with the energy price cap rising consistently since October under Labour’s watch – despite an election pledge to cut bills by £300.
And last month, it was revealed that inflation had unexpectedly risen to 3.6% on the consumer prices index in June, putting further strain on people’s bank accounts.
