Starmer Refuses to Commit to More Public Spending Amid Union Pressure

Labour leader Sir Keir Starmer speaks at the Unite Policy Conference at the Brighton Centre in Brighton, on July 13, 2023. Stefan Rousseau/PA Media

Sir Keir Starmer has refused to commit to further public spending under a Labour government amid growing calls from unions for him to back more of their policy priorities.

Appearing on the BBC’s Sunday with Laura Kuenssberg programme, the Labour leader reaffirmed his defence of the party’s focus on economic responsibility.

He said: “What I would do if we were in power is I would be absolutely laser-focused on growing the economy with a plan for growing the economy, I would also be laser-focused on reforming our public services to make sure we take the weight off our public services.”

Pressed on whether Labour would spend more in power, he said: “A Labour government will always want to invest in its public services. The way to invest in our public services is to grow our economy.”

Asked whether he is relaxed about being called a “fiscal conservative,” he replied: “I don’t mind what label people put on me. I do want to make my argument.

“My argument is this: What was absolutely plain from last year’s mini-budget is if you lose control of the economy it’s working people who pay.”

Economic Responsibility

It is his latest attempt to pitch Labour as a party prioritising “financial responsibility” over spending due to a dire economic backdrop.

Mr. Starmer has been putting financial prudence at the heart of his plans ahead of a set of crunch by-elections in which the party hopes to inflict defeats on the Conservatives.

In an article for The Observer newspaper, the Labour leader said: “Frankly, the left has to start caring a lot more about growth, about creating wealth, attracting inward investment and kick-starting a spirit of enterprise.

“It is the only show in town for those who dream of a brighter future,” he said.

He added: “Taking seriously the foundations of economic responsibility may not set people’s pulses racing, but the new country we can build on top of them will do.”

But his emphasis on economic prudence hasn’t been well received by the labour unions and the hard left.

Labour Urged to Be ‘Bolder’

The Unite union—Labour’s biggest financial backer—has warned Mr. Starmer there will be “no blank cheques” for his party.

Unite leader Sharon Graham told the BBC on Saturday: “I want to see some movement if we are going to give what we usually give. We would be better off with a Labour government but I am very, very disappointed with the lack of ambition.”

Ms. Graham’s intervention came after she saw off a bid by some members of the union to end affiliation with the party last week.

The union boss said, “We need to be as bold as the 1945 Labour government” which created the NHS.

Ms. Graham said that strict fiscal rules have led to “inertia” which has prompted the public to question what the difference is between Labour and the Conservatives.

According to the BBC, the union wants renationalisation of steel and energy companies to be near the top of the party’s priority list.

‘Socialism’

On Sunday, general secretary of the Rail, Maritime, and Transport (RMT) union Mick Lynch said people cannot “spot the difference” between the two main parties any more.

He told Sky News Sophy Ridge on Sunday programme that the Labour leader “won’t dare mention the word ‘socialism.’”

“I want to hear that word mentioned frequently, and I want to see a redistribution of wealth in our society, because there are a lot of very wealthy people and there are too many very poor people.

“And now people in the middle are being squeezed as well, with rents and mortgages skyrocketing. He doesn’t seem to be on the side of the people of this country.”

PA Media contributed to this report.