The UK's Prime Minister shelters aircraft journeys for political figures.
Following the shift in power in the UK, the new Prime Minister, Keir Starmer, has announced some tough financial adjustments in the UK's revised budget. Speaking to journalists, Starmer stated, "Expect a new budget in October, and it won't be a walk in the park." He further added, "Those with the most capability should shoulder the most burden." In spite of this, Starmer also declared some budget reductions for high-ranking politicians, such as the termination of an expensive helicopter deal worth millions.
Previously, Rishi Sunak, former PM, frequently utilized British Royal Air Force jets and helicopters for domestic travel, which was costly and arguably unnecessary. Now, under Starmer's leadership along with Defense Minister John Healey, the contract for the use of helicopters will not be renewed, saving the UK government an estimated £40 million, according to BBC reports.
Starmer's Labour Party had pledged throughout their campaign that taxes would not be hiked for the working class. Consequently, it is unlikely that income tax, national insurance contributions, and VAT will see an increase. Instead, there are rumors in the UK about possible increase in taxes on capital gains. However, Starmer stated that the nation's problems cannot be solved solely through tax revenue generation in the future. The focus should be on promoting economic development.
"We'll have to make hard decisions"
Starmer acknowledged the existence of a £22 billion deficit inherited from the Conservative regime he succeeded. He acknowledged, "Fixing this isn't a walk in the park." He further added, "We'll have to make hard decisions." The Labour Party had criticized the Conservatives for disguising this financial shortfall. Finance Minister Rachel Reeves announced plans to "lighten the load on public finances." The Conservatives contested these accusations. Ex-Finance Minister Jeremy Hunt accused the Labour Party of trying to pave the way for tax hikes under the guise of financial accountability.
With limited financial leeway due to the current economic climate, the new government faces challenges in funding required reforms, particularly in sectors like health and education. Furthermore, public debt has been hovering around 100% of GDP for several months. Public sector borrowing has surpassed expectations in July.
Starmer spoke out against the violent riots that erupted in early August following a tragic stabbing of several children. He described the riots as revealing "a deeply unhealthy society, weakened by a decade of division and decay, ridden by a spiral of populism" that had been fueled by the "failure" of the previous government.
The Conservatives suffered their worst election result ever at the July 4th election after 14 consecutive years in power. Starmer is scheduled to make his first official visit to Berlin to meet with German Chancellor Olaf Scholz on Wednesday.
Keir Starmer, in his address to journalists, reiterated that the upcoming budget won't be easy, stating, "We'll have to make hard decisions." Moreover, despite the Labour Party's promise not to increase taxes for the working class, there are rumors of potential increases in taxes on capital gains.
