Sir Keir Starmer must raise taxes or rein in the state, because not doing so would risk putting Britain “on a path to unsustainable debt” that could trigger Liz Truss-style market crises, a House of Lords committee has warned.
The Lords’ economic affairs committee said in a report that the prime minister must confront “painful choices on spending, tax and borrowing” to rebalance the public finances.
Lord Bridges of Headley, who chairs the committee, said that “muddling through” was not an option and cautioned that the absence of a financial buffer could leave the government scrambling to contain a surprise market shock similar to the one sparked by Truss’s mini-budget in 2022. “To put debt back on a gradual, downward path, tough decisions must be