Budget 2024: Keir Starmer vows to ‘flip the web page on Tory decline’ as issues are ‘worse than anticipated’

Keir Starmer lashed out at the Tory legacy as he vowed better times are ahead – two days before his Government’s first Budget on Wednesday.

In a televised speech, the Prime Minister said the public “needs to be realistic about where we are as a country” – but pledged to “protect the payslips of working people”. He said the state of public finances is worse than he expected during the election, claiming he faces bigger challenges than Tony Blair or David Cameron when they entered No10. Mr Starmer warned of spending cuts and tax rises – but claimed Labour would steer the country away from more years of austerity.

Pressed by The Mirror, he confirmed a cap on bus fares across England won’t be scrapped – although it will rise by 50%, from £2 to £3. He also refused to say whether MP Mike Amesbury should resign. Mr Amesbury was suspended by Labour on Sunday night after CCTV footage appeared to show him punch a man in the early hours of Saturday.

Speaking in Birmingham, Mr Starmer admitted he and Chancellor Rachel Reeves face “tough decisions”. But he said his Government is “turning the page on Tory decline, closing the book on their austerity and chaos”. And he pledged that his Budget would “protect the payslips of working people” – although he faces a backlash over a rise in employers’ National Insurance contributions which is coming on Wednesday.

Mr Starmer said: “Look – nobody wants higher taxes, just like nobody wants public spending cuts. But we have to be realistic about where we are as a country.

“This is not 1997 (when Tony Blair became PM), when the economy was decent but public services were on their knees. And it’s not 2010 (when Mr Cameron entered No10), where public services were strong, but the public finances were weak. We have to deal with both sides of that coin.

“These are unprecedented circumstances, but the budget the Chancellor will deliver on Wednesday, will prevent devastating austerity in our public services and a disastrous path for our public finances.” He said that if his Government stuck to Tory plans, that was the “reality” facing Britons.

It comes after he urged Mirror readers to “judge us by whether, in five years’ time, you have more money in your pocket”. The PM said it will be a landmark week for Britain, writing: “This is the moment that will reject austerity, chaos and decline and choose a clear path of stability, investment and reform.

“It’s no secret that for fourteen years, the Tories didn’t just run a leaky ship – they sailed it carelessly into every storm, smashing it against the rocks, and leaving the British people to pay the price.”

And in his speech he accused the Tories of running away from the avalanche of problems facing the country. He branded the previous Government “too weak to either reform sentencing or build new (prison) places, too scared to conduct a proper spending review”. He went on: “That’s why they ran away from that exercise and called an early election instead.”

He told the audience: “And yes – things are worse that we could possibly have expected during the election – the Budget will set that out very clearly.”

The Prime Minister was tight-lipped about much of the contents of Ms Reeves’ Budget, but did announce there would be £240million to “get Britain working”. He said this cash would help “tackle the root causes of economic inactivity”.

And he confirmed that the £2 cap on bus fares would end – but promised a new £3 limit instead. It follows concerns that it would be scrapped altogether at the end of the year.

Quizzed by The Mirror, Mr Starmer said: “On the £2 bus fare, first thing to say is the Tories only funded that until the end of 2024 and therefore that is the end of the funding in relation to a £2 capped fare. I do know how much this matters, particularly in rural communities where there’s heavy reliance on buses.

“And that’s why I’m able to say to you this morning that in the Budget we will announce there will be a £3 cap on bus fares to the end of 2025 because I know how important it is.”

Asked whether Mr Amesbury should resign he said: “I have seen the video footage, it’s shocking. We moved very swiftly to suspend him as a member and as a Member of Parliament.

“There is now a police investigation and in the circumstances you will appreciate there’s not much more I can say about that.”