UK Prime Minister Keir Starmer announced on Tuesday, 29 August 2024, that the forthcoming October 2024 budget would be “painful.” This announcement sets the stage for government spending cuts to address a GBP 22 billion (USD 29 billion) budget shortfall.

At the end of July, Labour revealed the shortfall figure, attributing it to the previous Conservative government’s overspending and inadequate budgeting.

“We have no other choice given the situation that we’re in,” Starmer said at 10 Downing Street. “Those with the broadest shoulders should bear the heavier burden; that’s why we’re cracking down on non-doms,” he added. 

Non-dorms are UK residents who are residing outside the country for tax purposes. Starmer stated that ‘those with the broadest shoulders should bear the heavier burden,” indicating a potential crackdown on non-domiciled individuals. He urged the nation to endure short-term hardships for long-term benefits.

“Those who made the mess should have to do their bit to clean it up, that’s why we’re strengthening the powers of the water regulator and backing tough fines on the water companies who have let sewage flood our rivers, lakes and seas,” Starmer said. “But just as when I responded to the riots, I’ll have to turn to the country and make big asks of you as well, to accept short-term pain for long-term good, the difficult trade-off for the genuine solution.”

Starmer stated that the UK’s public finances are “worse than we ever imagined,” indicating that “difficult” decisions are on the horizon. This statement followed his announcement to reassess the winter fuel payments provided to pensioners.

Starmer declared that his government would enact legislation and make pivotal decisions to safeguard taxpayers’ money, construct housing, and stimulate growth. He also committed to harnessing the full potential of artificial intelligence (AI) to foster growth and provide better services to the public.

Furthermore, he highlighted that Great British Energy will “make money for the taxpayer, produce clean energy, and create good jobs.”

Starmer concluded by pledging an economy that works for everyone and a national health service (NHS) that is not only restored but also prepared for future challenges.