Starmer: Labour will not 'turn on spending taps' if it wins election

Leader's speech likely to raise fears among senior MPs of public sector cuts

- Kiran Stacey and Pippa Crerar

Labour will not "turn on the spending taps" if it wins the next election, Keir Starmer will say today, bolstering the view of some senior Labour MPs that he is preparing to sign up to austerity-style public sector cuts. The Labour leader will use a speech on the economy to warn Britain is in its worst economic state in more than half a century and lay the ground for what shadow ministers expect to be extremely tight spending constraints after a general election.

The speech marks the first time Starmer has spoken publicly about the long-term path of public sector spending since last month's autumn statement, which put the UK on course for another round of public sector cuts after the election.

In a speech to the Resolution Foundation, he will say: "Anyone who expects an incoming Labour government to quickly turn on the spending taps is going to be disappointed... It's already clear that the decisions the government are taking, not to mention their record over the past 13 years, will constrain what a future Labour government can do."

He will add: "This parliament is on track to be the first in modern history where living standards in this country have actually contracted. Household income growth is down by 3.1% and Britain is worse off. This isn't living standards rising too slowly or unequal concentrations of wealth and opportunity. This is Britain going backwards. This is worse than the 1970s, worse than the recessions of the 1980s and 1990s, and worse even than the great crash of 2008."