Keir Starmer will use a speech in the North West to warn Nigel Farage’s ‘fantasy’ economics would lead to a Liz Truss-style economic meltdown and hit family finances
Keir Starmer will use a speech today to warn Nigel Farage’s “fantasy” economics would lead to a Liz Truss-style economic meltdown.
The PM will address workers in the North West after the Reform UK leader used a speech this week to unveil “uncosted” policies – running into the tens of billions. It comes after the Institute for Fiscal Studies (IFS) said the party’s pledge to increase the income tax personal allowance to £20,000 a year could cost between £50-£80 billion a year.
Mr Starmer is expected to urge the public to reject Reform UK’s calls to use “family finances” as a gambling chip in his “mad experiment”. He will warn the result will be the same as Ms Truss, who caused market mayhem with her mini-Budget and was turfed out of office after 49 days.
Among Mr Farage’s policies, the right-wing leader said his “biggest aspiration” was to lift the level at which people start paying tax to £20,000.
Mr Farage also committed to scrapping the two-child benefit limit, which Labour is examining as part of a child poverty strategy, restoring the winter fuel payments, and tax breaks for married couples. He claimed he’d be able to pay for the policies through scrapping net zero and diversity and inclusion programmes – but provided little detail.
Responding to Mr Farage’s speech, IFS deputy director Helen Miller said the announcements on winter fuel payments and the two-child benefit cap were “dwarfed” by the change to income tax personal allowance.
Speaking today, Mr Starmer will say: “In opposition we said Liz Truss would crash the economy and leave you to pick the bill. We were right. And we were elected to fix that mess. Now in government, we are once again fighting the same fantasy – this time from Nigel Farage. Farage is making the exact same bet Liz Truss did. That you can spend tens of billions on tax cuts without a proper way of paying for it.
“And just like Truss, he is using your family finances, your mortgage, your bills as a gambling chip on his mad experiment. The result will be the same. “
He will add: “Liz Truss bet the house and lost. £45 billion in unfunded tax cuts, with no means to pay for them. Markets reacted, the economy tanked and we’re all still paying the price for mortgages, rents and bills that spiralled out of control.
“I won’t let that happen. Labour’s Plan for Change has stabilised the economy, with growth at the fastest rate in the G7 this year, four cuts to interest rates, and a pay boost for 3.5 million low paid workers.” But Mr Farage hit back on X, claiming: “In the last 24 hours I have been attacked by Starmer, Badenoch, Swinney, Sarwar and just about everybody else — except for the voters. We must be winning.”
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