Brutal cuts feared as PM insists he'll 'stick to his plan'

SIR Keir Starmer has opened the door to more savage spending cuts as he tries to ward off recession after the economic meltdown from Donald Trump's trade tariffs.

- By Martyn Brown Political Editor

The Prime Minister insisted he would stick to his economic master plan and called for "cool" heads to see Britain through the global crisis.

He promised not to hike revenue-raising income tax, National Insurance or VAT, saying: “The first lever can't be more taxes.”

But with the economy already flatlining, it could mean more brutal cuts to services and an increase in borrowing.

Commitment

Sir Keir's remarks came as stock market volatility raged around the world in the wake of US president Mr Trump's import charges.

The value of US stocks dropped sharply as markets opened, following falls in London the FTSE 100 hit its lowest level for a year and across Europe and Asia.

Mr Trump's import blitz, including a 10% levy on British goods, threatens to severely damage the UK's growth outlook.

Economists warn it could force Sir Keir to raise taxes, make deeper spending cuts or break his fiscal rules to increase borrowing.

Asked if he would stick with his pledge not to hike the three main taxes, the PM said: "That is a commitment we've made and a commitment that we will keep, because the first lever can't be more taxes.