Starmer Says He’s Ready to Be Unpopular to Hit UK Challenges
(Bloomberg) - Keir Starmer said he will take "tough long-term decisions" to reform Britain and fix the country's public finances, as the prime minister addressed Labour's annual conference for the first time since his party swept to power in July's general election.
Most Read from Bloomberg
Unlocking the Hidden Power of Zoning, for Good or Bad
Eric Adams' Vanishing Promise to Fix NYC's 'Unfair' Property Taxes
Waiting for the Miracle of Church-to-Housing Development
Belfast's Grand Central Station Creates New Era for Northern Ireland's Public Transport
"I understand many of the decisions we must take will be unpopular," Starmer told delegates in Liverpool on Tuesday. "First we stabilize our economy, second we fix the foundations and third we build with pride and determination a Britain that belongs to you."
Starmer's conference speech — which combined lofty rhetoric about his hopes for Britain along with warnings about difficult choices ahead — came as he tries to re-inject momentum into his administration after suffering a series of early setbacks, including a row over donations and gifts, in-fighting among his top team and the backlash over the decision to remove winter energy assistance from about 10 million pensioners.
Starmer reiterated his message about a dire inheritance left by the previous Conservative government, but also tried to paint a more optimistic view of the country's prospects. He repeatedly said the "work of change has begun" and that his government was committed to national renewal.
That hint of a more optimistic tone came after he and Chancellor of the Exchequer Rachel Reeves had been accused of being too downbeat about Britain's economy and public finances, a gloominess which has coincided with a dip in consumer confidence and warnings from businesses that raising taxes in the Oct. 30 budget will undermine growth.
It's all made for an uncomfortable backdrop for Starmer, whose popularity has slumped along with his party's. An Opinium survey found Starmer polling less favorably than his predecessor Rishi Sunak, while an Ipsos survey showed six in 10 Britons were unhappy with the Labour government.
On Monday, Reeves tried to project a more positive vision for the country, promising a budget that would show "real ambition" to deliver growth. "I can see the prize on offer if we make the right choices now," she said.
But Starmer also warned off tough decisions looming to fix the £22 billion hole in the public finances Labour said it has inherited from the Tories.
"As we take on those massive challenges the Tories ignored, the time is long overdue for politicians to level with you about the trade-offs this country faces," he said. "Because if the last few years have shown us anything, it's that if you bury your head because things are difficult, your country goes backwards."
In other parts of his speech, Starmer also:
Addressed the riots that hit Britain over the summer, saying "I will never let a minority of violent, racist, thugs terrorise our communities"
Said he was committed to "control" of migration, and understood voters' concern about it
Announced that the state-run GB Energy would be based in Aberdeen
Said he would reform apprenticeships and "rebalance funding in our training system back to young people"
Starmer, though, also committed an awkward gaffe when he urged peace in the Middle East. As he called for the release of hostages in Gaza, he first referred to them as "sausages" before immediately correcting himself.
(Updates with more details from Starmer's speech in penultimate paragraph.)
Most Read from Bloomberg Businessweek
Palantir's CEO and Wall Street Annoy Each Other Straight to the Bank
Five Reasons to Be Optimistic About the Entertainment Business
Threats to Local US Election Officials Are Rising, and More Workers Are Quitting
The Man Who Made Nike Uncool
In Yosemite, Problems With Concessions Keep Piling Up
