Will Starmer's first challenge kill his fiscal rules?

Will Starmer’s first challenge kill his fiscal rules?

The Labour government is already at work, negotiating with Tata Steel over the future of its factory in Port Talbot. But will Starmer’s first challenge kill his fiscal rules?

According to The Independent.

Tata has shut down one of two blast furnaces at its biggest plant under its plans to switch to a greener form of production.

The second blast furnace at Port Talbot is due to be shut down in September.

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Unions are opposed to the changes, which will lead to the loss of around 2,800 jobs, although Tata has argued its restructuring programme is designed to stem “unsustainable” losses of more than £1 million a day.

On Laura Kuenssberg’s BBC politics show, Unite general secretary Sharon Graham acknowledged the new government’s commitment to spend £2.5 billion more on rebuilding the steel industry, but said it would have to break its fiscal rule and borrow money in order to prevent job losses.

Former Tory leader Michael Howard suggested this was not tenable, prompting This Writer to post the following on X:

It’s a possible Catch-22 for Keir Starmer because if he sticks to his fiscal rule, he may sacrifice thousands of jobs that are currently occupied by exactly the kind of Labour for which his party was named – but if he doesn’t, despite actually doing the right thing, he may be pilloried for breaking that rule so soon after the election.

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