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During a recent post-Budget visit to a community centre in Rugby, Warwickshire, Prime Minister Sir Keir Starmer displayed a rare and notable passion, a sharp contrast to the often robotic tone for which he is frequently criticized. Speaking candidly, Starmer expressed a deeply personal commitment to reducing child poverty, describing it as both a political and personal mission. Central to this commitment is the Budget decision to abolish the two child benefit cap, a policy introduced by the Conservatives in 2017 that limited universal credit or tax credit claims to just the first two children. This change, set to take effect next April, aims to lift half a million children out of poverty. The Prime Minister said, “I don’t want hundreds of thousands of children in this country living in poverty. I think it’s abhorrent,” underscoring his pride in the government’s achievement.
Despite this passionate stance, the decision took nearly 18 months to announce, a period during which Starmer expelled seven Labour MPs from the parliamentary party for supporting the very policy he now champions. His primary justification has always centered on affordability. Before the general election, he maintained that although removing the cap was a goal, financial constraints made it unfeasible. Chancellor Rachel Reeves and Starmer held this view during last year’s Budget announcement, but their perspective has since shifted, with additional resources now deemed available to fund the policy change. This development highlights a core reality about Budgets: they are exercises in prioritization, where decisions about what is affordable often reflect political and social priorities rather than rigid financial limits.
A significant and striking feature of Wednesday’s Budget was the deliberate emphasis by Sir Keir and Chancellor Rachel Reeves on large-scale tax and spending increases. Unlike past Labour governments that faced criticism for tax and spend policies, the current leadership is embracing this narrative. This approach represents a marked shift toward the Left, diverging from the positions senior Labour figures took during the election campaign, who had insisted they had “no plans” for tax hikes. Government officials defend these tax rises on moral grounds, framing them as necessary for just causes. However, the political dynamics are also unmistakable. Observers, including the author of this article, questioned whether the mantra of “country first, party second” had been inverted, with the Budget serving as a strategic move to solidify support among Labour MPs amid widespread unpopularity.
While the Prime Minister maintained that his fundamental motivation is to address pressing issues like child poverty and improvements in the NHS and schools, he acknowledged that political calculations inevitably play a role. “It’ll go down well with the PLP,” a minister acknowledged, hinting at skepticism from the wider public. Senior advisers stress that the government is doubling down on addressing the ongoing cost-of-living crisis, which has strained living standards for nearly two decades. The Budget’s focus on easing energy bills, rail fares, and prescription costs reflects this priority. Labour MPs appear cautiously optimistic, with some viewing the measures as positive steps supporting a clear message to voters. Sir Keir expressed an upbeat yet grounded outlook, stating, “I’m optimistic about this country. I think by putting in the proper foundations, taking the fair and necessary decisions, we can defy all of the forecasts.” In the face of persistent economic and political challenges, this optimism underscores the hope for reversing negative trends and securing renewed confidence from both the public and members of his own party
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