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Sir Keir Starmer’s doom warnings about economy are ‘too gloomy’ and risk stalling Britain’s growth, MPs fear

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LONDON, ENGLAND – AUGUST 27: Prime Minister Sir Keir Starmer during his speech and press conference in the Rose Garden at 10 Downing Street on August 27, 2024 in London, England. The Prime Minister said “the business of politics will resume” when Parliament returns next week, “but it will not be business as usual” and […]
Getty

LABOUR MPs fear Sir Keir Starmer’s doom and gloom warnings about the economy risk Britain’s drive for growth.

It comes amid a party backlash at Labour’s decision to scrap the Winter Fuel Allowance for all but the poorest pensioners.

Simon Dawson / No 10 Downing Street
Sir Keir Starmer risks economic growth over doom and gloom warnings[/caption]

As MPs returned to Westminster after the summer break, one party grandee told The Sun the PM and Chancellor were being “too gloomy” ahead of October’s Budget.

The former Labour cabinet minister warned weeks of speeches about how bad the state of the economy is risked denting business confidence in the UK.

They added: “People can understand that times are tough and will accept the pain, but only if you level with them at what the pain is for.”

They instead urged Downing Street to “show some hope, and show us the sunlit uplands coming”.

When pressed on whether his MPs need to calm down, Sir Keir said: “They do and there’s tough decisions to come.

Speaking to BBC 5 Live he added: “We made it really clear going into the election that we would deliver change.

“We will not be able to do that if we don’t do the tough stuff now. It’s not easy. And I understand why it feels difficult, but it’s got to be done.”

Yesterday the first Labour MP went public to demand ministers think again on cutting the Winter Fuel handouts of up to £300 for the over 66s.

New backbencher Neil Duncan-Jordan said there hasn’t been “sufficient time” to put in place an effective campaign for the elderly to claim pension credit – which can be worth up to £3,900 a year.

He said the move failed to take account of the “modest incomes” of those just above the pension credit threshold.

He also warned there is also a 10 per cent hike in the energy price cap from October to contend with.

Duncan-Jordan also called for a delay on the policy until there was a “comprehensive strategy aimed at tackling fuel poverty, health inequalities and low incomes among older people”.