Keir Starmer to tell cabinet to slash cost of living in new year message
Keir Starmer will warn his cabinet to cut costs of living when they meet for the first time this year after new figures suggested the poor are getting poorer under Labor rule.
With his beleaguered government still trailing Nigel Farage’s Reform UK in the polls and expected to suffer heavy losses in May’s local, Scottish and Welsh elections, the prime minister will tell ministers to find ways to cut household bills.
“I know families across the country are still concerned about the cost of living,” he will say. “We will not give up our fight to make life better for them,” he said.
The Labor leader will use an event on Monday to highlight steps his government has already taken as he tries to persuade disgruntled voters, but the renewed push comes after weeks of negative economic headlines, including warnings that workers will be “beaten” over Rachel Reeves’ secret taxes.
The Chancellor said in his Budget in November that he was “asking everyone to contribute” to fund public services and investment after months of slow economic growth.
But the decision to force millions of people to pay higher taxes would “weaken” workers by freezing the threshold, while retirees and welfare recipients would see their incomes rise, a new analysis has found.
An analysis by the Center for Policy Studies (CPS) think tank found that a worker currently earning £50,000 would be £505 worse off in real terms by 2030-31, despite their wages being predicted to rise by more than £6,000.
Declaring no compromises will be made in the fight against high living costs, the Prime Minister is expected to highlight six interest rate cuts in recent months that Labor says have left mortgage costs at the lowest level since Liz Truss’s disastrous mini-budget.
Millions of households will see their energy bills cut by £150 from April, while low-paid workers will see a £900 increase in the national living wage.
Speaking at an event on Monday, Sir Keir said more families would start to feel the impact of Labor policies this year.
He will tell families: “The Labor government is on your side, doing everything we can to reduce the cost of living and make life better. The elections we have in 2026 will mean more people start to feel this positive change.”
He will add: “This is real change you can feel every day. Britain is turning the corner and 2026 will be the year when more people will feel renewal become a reality.”
“We will use every tool we have to address your cost of living and make your lives better. That’s my promise to all of you.”
The first cabinet meeting of the year will be held on Tuesday.
