Keir Starmer has urged MPs to be realistic as he moved to crush a rebellion over planned massive welfare cuts planned for later this month in a speech to MPs in the Parliamentary Labour Party (PLP).
The prime minister has launched a preemptive strike as Labour MPs have privately voiced disquiet about plans by chancellor Rachel Reeves to slash benefits for the disabled and long term sick as she tries to balance the books.
He warned MPs: “The real world is moving quickly and people look to their government not to be buffeted about by that change – not even to merely respond to it – but to seize it and shape it for the benefit of the British people.”
With Labour facing a tough by-election in Runcorn following the decision by disgraced MP Mike Amesbury to step down after being sentenced for assaulting a constituent, Sir Keir had an important message to get Labour MPs ready to fight their first real test since the election.
The meeting though began with the image of veteran Labour MP and long time Starmer critic Diane Abbott being locked out after she turned up late.
It comes amid anger after Sir Keir had already instructed her to increase defence spending to 2.5 per cent of GDP by cutting the size of the international aid budget to just 0.3 per cent of GDP.
There is also ongoing anger over the cuts to winter fuel payments for pensioners and decision to extend inheritance tax to farmers.
But with Labour MPs considering whether to rebel against “balancing the books on the backs of the disabled” Sir Keir insisted that they have no choice.
He told them that if nothing was done the cost of disability and sickness benefits for people of working age will rise to £70 billion by 2030.
A labour frontbencher told The Independent the atmosphere in the room was positive “after the two weeks opposition parties have been having”.
He said the prime minister could not have hoped for better than the chaos plaguing Reform UK and Kemi Badenoch’s failure to cut through to the public.
The Starmer ally said MPs quizzed the PM on his upcoming welfare reforms, with Sir Keir putting the moral and economic case for cutting the benefits bill back to them.
“Even with these reforms, the benefits bill will still be higher in real terms at the end of this parliament than it was at the beginning,” they added.
Asked whether the PM faced any dissent over the planned cuts to benefits and international aid, the MP said even those who have worked in the aid sector understand the need to fund an urgent defence spending increase.
Another MP said topics the PM was quizzed on included economic growth and his plans for a peacekeeping force in Ukraine.
But dissent outside the PLP meeting on Monday night was limited, with a group of pro-Starmer MPs putting the government’s case to gathered journalists.
Previously, chancellor of the duchy of Lancaster Pat McFadden had warned that there were already 2.8 million people of working age stuck on disability and sickness benefits and that is set to increase to 4 million by 2030. Around 1 million of these are young people not in work or full time education.
Sir Keir told MPs: “We’ve found ourselves in a worst of all worlds situation – with the wrong incentives – discouraging people from working, the taxpayer funding a spiralling bill, £70 billion a year by 2030.
“A wasted generation. 1 in 8 young people not in education, employment or training and the people who really need that safety net still not always getting the dignity they deserve. That’s unsustainable, it’s indefensible and it is unfair, people feel that in their bones. It runs contrary to those deep British values that if you can work, you should. And if you want to work, the government should support you, not stop you.
He added: “This needs to be our offer to people up and down the country: if you can work, we will make work pay. If you need help, that safety net will be there for you. But this is the Labour party. We believe in the dignity of work and we believe in the dignity of every worker.
“Which is why I am not afraid to take the big decisions needed to return this country to their interests. Whether that’s on welfare, immigration, our public services or our public finances. We can’t just shrug our shoulders and look away. We can’t just tinker around the edges. We won’t try and sow division or create distractions, we’ll roll up our sleeves, take responsibility and make the reforms needed to fix what is broken.”
Sir Keir also defended his attempts to win over Donald Trump and hold support for Ukraine despite the way the White House has behaved towards President Volodymyr Zelensky.
He said: “Our defence and the security of the British people must come first. The extra defence spending I announced last week will rebuild industry across the country. It will support businesses, it will provide good, secure jobs and skills for the next generation. That is what we owe the British people.”
