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The New Statesman | UK politics and culture

"Things will get worse": is austerity back?

Aug 28, 2024
Rachel Cunliffe, an associate political editor, and George Eaton, a senior editor, unpack the looming economic challenges as Keir Starmer hints at a painful budget for Labour. They discuss the possibility of austerity's return, highlighting the delicate balance the party must strike between addressing past Conservative failures and maintaining voter trust. The conversation touches on public sector pay disputes, tax strategies amidst a cost of living crisis, and the political responses to upcoming fiscal policies, painting a vivid picture of the current political atmosphere.
24:43

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Quick takeaways

  • Keir Starmer warns that Labour's first Budget will involve painful tax rises and spending cuts due to economic challenges.
  • The podcast discusses Labour's strategy of deflecting blame to past governance while navigating criticism for proposed austerity measures.

Deep dives

Keir Starmer's Agenda and Challenges Ahead

Keir Starmer acknowledges the difficult economic landscape inherited from the Conservative government, predicting that the initial stages of Labour’s governance will be challenging. He suggests that future decisions will likely involve tax increases and spending cuts, positioning the party's forthcoming budget as a necessary response to past mismanagement. The narrative of inheriting a 'black hole' in public finances serves to frame Labour’s challenges while also deflecting blame from its own potential missteps. This approach mirrors historical political tactics, as referencing past failures allows Labour to establish a sense of urgency for their agenda while creating common ground with voters frustrated by economic conditions.

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