Starmer says Budget £240m for local services to help people get back to work

Sir Keir Starmer said the Chancellor will announce £240 million in funding for local services to help people get back to work as part of this week’s Budget.

Rachel Reeves will deliver her first Budget on Wednesday as the government looks to plug what she calls a £22bn “black hole” in the public finances.

Addressing an audience in Birmingham on Monday, the Prime Minister said the UK was “the only G7 country where economic inactivity is still higher than pre-Covid”.

Chancellor to announce £240m funding to deliver local services that can help people get back to work

“This isn’t just bad for our economy,” he said.

“It’s also bad for those who are deprived of opportunities.

“So the Chancellor will announce £240 million of funding to provide local services that can help people get back to work.”

The Prime Minister also laid out his budget approach for “employees”.

Ministers face constant questions over the Government’s definition of “working people”, after Labour’s election manifesto promised that taxes on workers would not be increased (explicitly rejecting increases in VAT, national insurance and income tax).

They were under pressure to explain exactly who would and would not fall under that definition, given the size of the tax increases expected to be announced this week.

Confidence in my project to return Britain to the service of working people can only be won by deeds, not words

Sir Keir told the audience in Birmingham: “Confidence in my project of returning Britain to the service of working people can only be won by deeds, not words.

“The change must be felt.

“But every decision we make, every decision we make in the future, will be made with people working at our wits end, people who have been working harder for years, working non-stop.

“People are doing the right thing, maybe finding some money to put aside even in the cost of living crisis, paying their own way.

“But there are those who feel that this country no longer gives them or all of its children a fair chance.

“The city center has been devastated by antisocial behaviour, people stuck on the NHS waiting list who can’t afford to buy a place to call home or can’t pay for the house they own because of the mortgage bomb.”