Keir Starmer Faces MPs Today Over Budget Tax Hikes Impact

UPDATE: Keir Starmer is set to face intense questioning from MPs today regarding the economic fallout from the recently announced Budget. This comes as the Organisation of Economic Co-operation and Development (OECD) warns that proposed tax hikes will create a significant “headwind” for the UK economy over the next two years.

The Prime Minister will appear in the House of Commons at 12:00 PM BST for his weekly confrontation with Conservative leader Kemi Badenoch. This scrutiny follows Chancellor Rachel Reeves‘s Budget announcement last week, which has drawn sharp criticism for its potential impact on economic growth.

The OECD’s latest report highlights that the UK is projected to experience the highest inflation rate among G7 nations this year, with growth expected to decelerate significantly. Economists are sounding alarms over “substantial” risks associated with the government’s fiscal strategies, emphasizing the urgency of the situation.

In addition to the OECD’s concerns, the Office for Budget Responsibility (OBR) is also under scrutiny. On Tuesday, the OBR suggested that Chancellor Reeves’ communications leading up to the Budget were “not inconsistent” with its earlier analyses, contradicting claims that she misled the public about the financial state of the nation.

This tension follows the resignation of OBR chairman Richard Hughes, who stepped down after a premature release of the OBR’s assessment of the Chancellor’s plans online. Professor David Miles, a member of the OBR committee, clarified that the agency is not “at war” with the Treasury, despite the apparent discord.

Former Labour Prime Minister Gordon Brown has also weighed in, defending Reeves against accusations that her proposals to tackle child poverty, including the lifting of the two-child benefit cap, are misguided. In his op-ed for the Daily Mirror, Brown called for supporters to confront what he termed “this week’s Tory lie” regarding the benefits of the policy change.

As the debate intensifies in Parliament, all eyes will be on Starmer’s responses and the implications of the Budget on everyday Britons. With tax increases looming, the immediate concerns for many citizens include the potential impact on household budgets and the overall economy.

What happens next in this unfolding saga will be crucial as the government navigates these challenging fiscal waters. Stay tuned for live updates as the situation develops.