'Bring it on': Starmer sets out Labour's economic plans to voters as he vows to take on Sunak debate

Sir Keir Starmer has kicked off the likely election year by seeking to draw dividing lines with the Conservative Party during a new year's speech in Bristol on Thursday.

The Labour leader said he wanted to fight an election on the Tories' economic record and said it was “nonsense” to suggest he wanted to duck TV debates with Rishi Sunak, adding "bring it on".

A Labour government would want to cut taxes, Sir Keir said, but he insisted that reversing flagging growth would be the first priority if he takes power at the next general election.

In his new year’s speech at the National Composites Centre at Bristol and Bath Science Park, Sir Keir said: “We don’t just expect an election on the economy, we want an election on the economy and we’re ready for that fight.

"Ready to close the book on the trickle-down nonsense once and for all,” he added.

He also pledged a “crackdown on cronyism”, with a message to fellow politicians: “To change Britain, we must change ourselves. "Nobody will be above the law in a Britain that I lead."

The party’s tax offering to voters heading into an election year has been the subject of speculation in recent days and weeks, but Sir Keir insisted that his priority was growing the economy to the benefit of voters.

Pressed by ITV News Deputy Political Editor Anushka Asthana on whether Labour in power would unfreeze income tax thresholds, Sir Keir declined to give a specific answer.

ITV News Deputy Political Editor Anushka Asthana asks Sir Keir Starmer if Labour would unfreeze income tax thresholds if in power

“I do want more people to have more money in their pocket. That’s a fundamental principle we start with," Sir Keir said.

“Now, the question is how do we get to that? I’m challenged on tax all of the time.

"The first lever that we want to pull, the first place we will go, is growth in our economy because that’s what’s been missing for 14 years.”

He added: “Any tax cuts have to be fair and affordable, and we have to be realistic about that. But I think the place to go is to growth on this.”

The Labour leader responded to Tory attacks on the flagship £28 billion green plan, which has already been watered down from the original ambition.

But he also acknowledged that his party’s fiscal rules would take precedence over the policy.

Labour had originally promised in 2021 to invest £28 billion a year until 2030 in green projects if it came to power.

But last year shadow chancellor Rachel Reeves said the figure would instead be a target to work towards in the second half of a first Parliament.

“The money that is needed for the investment that is undoubtedly needed, saying that the £28 billion will be ramped up in the second half of the Parliament, that it will be subject of course to any money that the government is already putting in, and it will be subject to our fiscal rules," Sir Keir said.

“That means that if the money is from borrowing, which it will be, borrowing to invest, that the fiscal rules don’t allow it, then we will borrow less.

"It is very clear and that is why this attack is utterly misconceived on this."

Meanwhile, Mr Sunak has conceded that 2023 was challenging, but promised a “better year” ahead.

Speaking on a visit to Mansfield, Nottinghamshire, the prime minister said: “Look, 2023, I’ll be honest, it wasn’t the easiest of years, for any of us, it wasn’t an easy year for our country.”

He said “lots was tricky”, including that the nation was still dealing with the legacy of Covid, the war in Ukraine and the conflict in Gaza.

“I’m going to tell you, I know that 2024 is going to be a better year, I want to make sure that all you believe 2024 is going to be a better year too.”

He said he was confident of improvements because he is “making progress” on his five priorities, arguing the economy is outperforming expectations and that debt is “on track to be lower and falling”.

Mr Sunak has said he is working towards a general election in the second half of the year after coming under pressure to call a vote soon.

The PM said on Thursday it is his “working assumption” that he would not be sending the public to the polls in the spring, as opposition figures have been talking up.

Mr Sunak dangled the prospect of future tax cuts to voters and attacked Sir Keir’s green proposals as the two leaders set out their stalls at the start of the election year.

Sir Keir has demanded that Mr Sunak sets a date for the election rather than “squatting” in No 10 after the prime minister downplayed the prospect of a spring vote.

He said: "If the prime minister is now hinting that it is going to be later in the year, I think the question is what's he hiding?

"This is a serious issue for the country, if he can't name a day, then effectively he's just squatting in Downing Street holding the country back with his dithering and delaying."

Rishi Sunak said on Thursday it is his “working assumption” that he would not be sending the public to the polls in the spring

Sir Keir also said he is “fundamentally opposed” to axing or reducing inheritance tax.

“They floated this last year, they’re floating it again now, I don’t know whether they’re going to do it," he said.

"But I would’ve thought by now that they would’ve learned the lesson that further tax breaks for those who are the best-off with nothing for working people is not a good idea.

“I don’t believe in tax breaks for those who are already well-off when there’s nothing on offer for working people. So, I wouldn’t be doing what they’re floating.”

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