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 endure short-term financial hardships in exchange for long-term prosperity.
In his first speech to the Labour conference since taking office, he will outline the need for tough economic decisions to address the “black hole” in public finances left by the Conservatives, stating that tax cuts are not on the horizon until these issues are resolved.
Looking to the future, Starmer will pledge that stabilising the economy will deliver tangible benefits over the next five years, including higher growth, reduced NHS waiting lists, stronger borders, and a cleaner energy system. This positive message is aimed at dispelling criticism, even from within his own Cabinet, 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 backlash over the removal of winter fuel payments for 10 million pensioners, a move that prompted boos 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 more secure and prosperous future for the country.
“The politics of national renewal are collective,” Starmer is expected to say. “This will be tough in the short term, but in the long term, it’s the right thing to do for our country. If we take tough long-term decisions now—higher economic growth, reduced hospital waiting lists, safer streets, stronger borders, clean British energy—we will reach that light at the end of this tunnel much more quickly.”
His speech is likely to set the stage for the Labour government’s first budget on October 30, where tax increases and spending cuts are expected, echoing earlier warnings from Chancellor Rachel Reeves. While Labour has ruled out raising income tax, National Insurance, VAT, or Corporation Tax, other areas such as Capital Gains Tax and inheritance tax may see adjustments.
Tackling the ‘financial black hole’
Starmer will highlight the £22 billion fiscal deficit inherited from the previous government, warning that financial prudence is essential to prevent further damage to the economy. “It’s not just the financial black hole left by the Tories,” he will say, “but also our decimated public services. Just because we want low taxes and good public services doesn’t mean we can ignore the need to properly fund policies.”
The Prime Minister’s remarks are expected to include a defence of Labour’s economic strategy, positioning it as the only responsible path forward after years of what he describes as Conservative economic mismanagement. This comes as Starmer faces declining approval ratings and disillusionment among voters, with some accusing him of focusing too heavily on the mistakes of the previous government rather than offering hope for the future.