UK Prime Minister Keir Starmer Unveils Plans to “Fix the UK's Foundations”

In a speech at Downing Street, UK´s Prime Minister Keir Starmer laid out his government's ambitious agenda to "fix the foundations" of the United Kingdom, a promise he made upon taking office just two months ago.

Starmer emphasized that economic growth and wealth creation are the top priorities of his administration. 

He revealed a £22 billion black hole in public finances that his government inherited, a shortfall that he claimed was unknown even to the Office for Budget Responsibility (OBR) until recently. Additionally, the government has faced unexpected borrowing increases and ongoing fiscal pressures.

The Prime Minister's speech did touch on tax-related issues, such as:

1. Cracking Down on Non-Doms: Starmer indicated that his government will target non-domiciled taxpayers as part of their fiscal strategy. This move aims to ensure that those who have benefited from the tax system but contributed less than they should, will now have to pay their fair share.

2. Budget Pain: Starmer acknowledged that the upcoming budget, due in October, would involve difficult decisions that could be painful. This suggests that there might be measures affecting taxation or public spending that could impact individuals and businesses.

As Labor pledged previously not to raise income tax, national insurance or VAT, the referenced 22 billion GDP black hole in public balances will need to be fixed with other measures, with speculations circulating over targeting capital gains and inheritance tax as well as possible impact on pensions. 

SOURCE/ RECOMMENDED READ:

• Keir Starmer's speech on fixing the foundations of our country: 27 August 2024 - GOV.UK (www.gov.uk)