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27 August 2024

Kier Starmer: State of the Nation speech

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An update from our Parlimentary Advisors

Sir Keir Starmer has given his first major speech as Prime Minister, outlining his government’s priorities for the country.

The Prime Minister used the speech to provide context for the political and economic inheritance of his government, contrasting the “failure of honesty” of previous administrations with his government of “service”.

The recent riots, alongside the parallel crises in the justice and prison systems, was ascribed to the general notion of political “failure”, with the Prime Minister arguing that this summer’s disorder was symptomatic of a wider breakdown in public trust of government. He also reiterated that, like the public finances, the scale of the shortfall in prison places was not as acutely apparent to him as it is now.

This translated into broader policy themes. Referencing the £22 billion blackhole left by the Sunak administration, the Prime Minister argued that difficult decisions were necessary, suggesting that the cut to the Winter Fuel Allowance was a “painful” trade-off designed to pave the way for longer term, “genuine” solutions to fixing the public finances. A crackdown on non-doms was also referenced, tying into the speech’s secondary theme of fairness.

While refusing to speculate on the budget, due 30th October, he reaffirmed his government’s commitment to avoiding tax rises, while also arguing that ending the union disputes was, despite criticism, the best way to get productivity up and the economy growing.

The Prime Minister wrapped up his speech by promising a period of “actions, not words” between now and Christmas. This included a pledge to accelerate building, in line with the election pledge to build 1.5 million homes by the end of the parliament; a commitment to “levelling up” workers’ rights; a commitment to leverage the full potential of AI; and a reiteration of the election pledges to nationalise Britain’s railways and to set up GB Energy, with both designed to provide value to taxpayers and consumers.

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