Keir Starmer says economic gains will take some time

Sir Keir Starmer has warned that it will “take some time” for people to feel richer, as he asked MPs to be patient over his plans to boost economic growth.

The Prime Minister told a committee of senior MPs that Britain has been suffering from “stagnant or low growth” for more than a decade.

He said the October Budget would bring more investment and planned changes to planning rules would make a “huge difference”.

And he insisted he was still committed to achieving the highest “sustained” growth among G7 countries by the time of the next election.

It came as the Bank of England said the economy had performed worse than expected, with no growth between October and December.

sir keer G7 set development goals In early 2023, more than a year before his party is expected to return to power in a July general election.

Earlier this month, he announced an additional target for improving living standards, leading to some accusations that he was stretching the target on which he wanted his government to be evaluated.

But in his first appearance before the Liaison Committee of senior MPs since entering Downing Street, Sir Keir insisted he still wanted the UK to join other G7 members, including the US, Germany and Japan, by 2029. Committed to taking it forward.

When told that economic forecasts showed that this was not going to happen, he said that he had not taken into account some policy changes in the future.

He cited the increase in the legal minimum wage announced in the October Budget as an example of how ministers were boosting living standards.

He said changes to the planning system, other “regulations” and new technology such as artificial intelligence (AI) would also help improve the UK’s economic growth rate.

Asked when people would feel better, he said, “It will take some time, that’s for sure.”

“Planning will take time. Changes in regulation will take time, we have a national wealth fund that is investing, getting record investments into the country, it will take time.

“But because of what we did in the Budget, some of the lowest paid people are already feeling the benefits of a Labor government.”

Labor has complained about the legacy left by the Conservatives, including the controversial £22 billion “black hole” in this year’s spending plans.

In the Budget she announced plans to increase taxes, including the amount of National Insurance, paid by employers from next April.

Ministers have insisted the move is necessary to strengthen the country’s financial position – but they have faced criticism from the opposition that the move would hamper efforts to boost Britain’s economic fortunes.