UK PM declares fiscal “black hole” and “unpopular decisions”.

UK PM declares fiscal “black hole” and “unpopular decisions”.

LONDON (Reuters) – British Prime Minister Keir Starmer said on Tuesday (27) he would have to take unpopular decisions, raising the prospect of “painful” taxes on the wealthy and spending cuts to fix the country's myriad problems. He is responsible for what he calls conservative misgovernment.

In a speech in the rose garden of his official Downing Street home during the Covid-19 pandemic, one of the previous Conservative governments, Starmer promised an end to politics as usual, saying he was honest with them that England's problems had to get worse before they got better.

Elected in a landslide victory in July, Starmer has promised to rebuild British society, saying this month's anti-immigrant riots reflected divisions in what he described as the Conservatives' preference for populism.

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He blamed the last government for leaving him with a £22 billion ($29 billion equivalent) black hole, which he said was unexpected and forced him to take some tough decisions, such as capping fuel allowances for the elderly.

The opposition Conservative Party accuses Starmer's Labor Party of portraying the financial situation as worse than it is to raise taxes after campaigning before the election not to raise some taxes on workers.

Starmer said he plans to make good on that promise, but that there will be short-term pain with what he called “unpopular decisions” for long-term gain.

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“The budget is going to be presented in October and it will be painful. We have no choice…those with broad shoulders must bear the heavy burden,” he said in a campaign speech to voters, referring to the tax announcement scheduled for October 30.

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“We've got not only an economic black hole, but a social black hole, and that's why we have to act differently and do things. Part of that is being honest with people about the choices we face and how difficult it will be,” he said.

“Frankly, things are going to get worse before they get better,” he told an audience of interns, teachers, nurses, small business owners and firefighters.

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The Rose Garden last made headlines after former prime minister Boris Johnson and his team used it to host parties during the Covid-19 lockdowns, events Starmer said had undermined trust among the public and its politicians.

Conservative leadership candidate Kemi Patenoch, who is also the party's policy leader for housing and communities, said Starmer's speech was based on “dishonest analysis”.

“The reality is that Keir Starmer is managing voter expectations for a decade of decline,” he said in a statement.

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