URGENT UPDATE: UK Prime Minister Keir Starmer is preparing for a critical address at the Labour Party conference in Liverpool today, with significant implications for his leadership and party unity. As he takes the stage, various factions within the party are pushing for bold commitments, particularly concerning child benefit reforms and a tougher stance on the ongoing conflict in Gaza.
Starmer’s challenges are compounded by the political landscape, with rival parties like the Greens and the newly formed Your Party, led by former Labour leader Jeremy Corbyn, vying for left-leaning voters. The emergence of Nigel Farage’s Reform Party is further complicating matters, as it pulls support away from both Labour and the Conservative Party.
As Starmer addresses the party faithful, he faces mounting pressure from the business community, which is currently in a state of unrest. Rachel Reeves, the Chancellor, recently announced a shocking £25 billion increase in payroll taxes during her first Autumn Budget, leading to rising unemployment and falling job vacancies. The CBI has reported a tax burden on businesses hitting 30.5%, the highest this century.
Specific sectors, including pharmaceuticals and oil and gas, are particularly agitated. Companies like AstraZeneca and Merck have paused investments due to dissatisfaction with the UK’s drug pricing regime, while oil and gas producers are shedding jobs following increased windfall levies.
Starmer’s speech offers a chance for him to reverse the negative sentiment and reassure businesses that there will be no further surprise tax increases. The banking sector, in particular, is on high alert for signals that additional levies or changes to interest rates will not be imposed. The Prime Minister may also consider easing restrictions on North Sea exploration, a move that could revitalize the oil and gas industry.
Moreover, the pensions and investment sectors are hoping for a commitment that the existing tax regime will remain unchanged during this parliamentary term. A letter from Rick Haythornthwaite, chair of NatWest Group, emphasized the need for tax reforms that enhance the UK’s competitiveness, a sentiment that could resonate during Starmer’s address.
As Starmer prepares to speak, the bond market will be closely monitoring his words. Recent comments from Andy Burnham, the mayor of Greater Manchester, suggesting a relaxation of fiscal discipline, have raised concerns reminiscent of former Prime Minister Liz Truss‘s short-lived premiership. Reeves warned party members that losing market confidence could result in higher costs for ordinary citizens, a message Starmer is likely to echo.
The stakes have never been higher for Starmer. With a parliamentary majority and a party demanding action, his address could shape the future of Labour and its electoral prospects. As he steps onto the stage today, all eyes will be on him to deliver the reassurance and bold plans that both his party and the wider public are desperate for.
Stay tuned for live updates as this story develops.
