From Morningstar: 2024-08-27 09:18:00

In a speech in the Downing Street rose garden on August 27, the prime minister stated his government has accomplished more in seven weeks than the previous Conservative government did in seven years. He highlighted a £22 billion “black hole” in public finances, clarifying that the Tories borrowed £5 billion more than expected.

Starmer emphasized inheriting a societal crisis exacerbated by recent riots, justifying tough decisions like early prisoner releases and means-testing pensioners’ winter fuel allowance. He foreshadowed a tough October budget, suggesting increased taxes on non-doms and fines for water companies neglecting sewage regulations to mend the country’s foundation.

The prime minister hinted at potential tax rises without preempting the budget, affirming a commitment to the “triple lock for working people.” He maintained promises of no increases in national insurance, VAT, or income tax, but acknowledged the unexpected £22 billion deficit. Winter fuel allowance concerns for pensioners spotlighted the need to address essential areas like healthcare, education, and housing in the upcoming budget.



Read more at Morningstar: Prime Minister Braces Taxpayers for Painful Budget