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There’s no honeymoon for new UK leader Keir Starmer after a summer of unrest

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LONDON (AP) — There was no summer honeymoon for Keir Starmer.

Britain’s new prime minister, elected in a landslide less than two months ago, had to cancel a planned vacation after anti-immigrant unrest erupted across the country. He has spent his first weeks in office dealing with the aftermath, and issuing stark warnings about the state of the nation and the economy.

As lawmakers returned to Parliament on Monday after a shortened summer break, Starmer’s left-of-center Labour Party government was preparing for a budget statement next month that’s likely to include tax rises or public spending cuts — or both.

The mood music is in stark contrast to the campaign song used by former Prime Minister Tony Blair, the last Labour leader to win an election: “Things Can Only Get Better.”

“Frankly, things will get worse before they get better,” Starmer told voters in a televised speech last week.

Starmer is seeking to hammer home the message that the right-leaning Conservative Party, booted out by voters in the July 4 election, presided over “14 years of rot” that’s left Britain weakened economically, structurally and even morally.

During the election campaign, Starmer vowed to get the country’s sluggish economy growing and restore frayed public services such as the state-funded National Health Service.

Since winning power he’s said the situation is “worse than we ever imagined,” with an unexpected 22 billion pound ($29 billion) hole in the public finances. Labour has decided not to increase taxes on “working people,” but it has to find money somewhere. It has already scaled back a payment intended to help pensioners heat their homes in winter.

Starmer said last week that a budget statement coming on Oct. 30 will be “painful” and involve “short term pain for long term good.”

Conservative economy spokeswoman Laura Trott accused Starmer and his government of trying to “run from responsibility for the tax rises they always planned but hid from the public during the election.”

Paul Johnson, who heads economic think-tank the Institute for Fiscal Studies, has said Labour is being “disingenuous” when it claims to be surprised by the state of the finances, but that the Conservatives had “left Labour a mess to clear up.”

Rob Ford, professor of political science at the University of Manchester, said Starmer’s government was going to “have to grasp the nettle” and confront the fact that two key pledges – improving public services and not raising any of the main taxes – “aren’t both achievable.”

Starmer faced a big test within weeks of taking office when anti-immigrant violence erupted after three children were stabbed to death in the town of Southport. The violence, fueled by online misinformation blaming a migrant and stirred up by far-right groups, spread across England and Northern Ireland over several days.

Starmer responded firmly, condemning a “mindless minority of thugs” fueled by the “snake-oil of populism” and pledging swift justice and tough sentences for rioters. But he says he was hobbled by past Conservative spending cuts that have left courts overstretched and prisons overcrowded.

Amid alarm from some Labour lawmakers about the gloomy messaging, the government is now trying to sound more positive. It notes that in his first weeks in office, Starmer scrapped the Conservatives’ stalled and controversial plan to send some asylum-seekers who arrive in the U.K. to Rwanda, struck deals with public-sector unions to end a wave of strikes and began to mend fences with the European Union after years of acrimony over Britain’s departure from the bloc.

The government is promising what it calls a “packed” parliamentary agenda to address some of voters’ main bugbears, including unreliable trains, sewage-dumping water companies and soaring rents. In the coming weeks it plans legislation to take public ownership of the railways, set up a state-owned green energy firm, impose tougher rules on water firms and strengthen workers’ rights.

“After 14 years of the Conservatives, we’ve had to act quickly and act drastically to stop the rot at the heart of our country’s finances, our public services and our politics,” House of Commons leader Lucy Powell said Sunday.

The opposition Conservatives have questioned Starmer’s judgment and accused him of cronyism after several Labour backers were given civil service jobs. But the defeated party is occupied with a leadership contest to replace Rishi Sunak, which may give Starmer some breathing room.

Still, Ford said Starmer is taking “a big gamble on voters’ patience.”

“If you look at all the polling, it suggests people are very aware of the severity of the crisis, and I think that will buy them some time,” he said. “But I think any strategy that is built around disappointing voters and asking them for patience is inherently risky.”

The Canadian Press. All rights reserved.



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RCMP investigating after three found dead in Lloydminster, Sask.

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LLOYDMINSTER, SASK. – RCMP are investigating the deaths of three people in Lloydminster, Sask.

They said in a news release Thursday that there is no risk to the public.

On Wednesday evening, they said there was a heavy police presence around 50th Street and 47th Avenue as officers investigated an “unfolding incident.”

Mounties have not said how the people died, their ages or their genders.

Multiple media reports from the scene show yellow police tape blocking off a home, as well as an adjacent road and alleyway.

The city of Lloydminster straddles the Alberta-Saskatchewan border.

Mounties said the three people were found on the Saskatchewan side of the city, but that the Alberta RCMP are investigating.

This report by The Canadian Press was first published on Sept. 12, 2024.

Note to readers: This is a corrected story; An earlier version said the three deceased were found on the Alberta side of Lloydminster.

The Canadian Press. All rights reserved.



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Three injured in Kingston, Ont., assault, police negotiating suspect’s surrender

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KINGSTON, Ont. – Police in Kingston, Ont., say three people have been sent to hospital with life-threatening injuries after a violent daytime assault.

Kingston police say officers have surrounded a suspect and were trying to negotiate his surrender as of 1 p.m.

Spokesperson Const. Anthony Colangeli says police received reports that the suspect may have been wielding an edged or blunt weapon, possibly both.

Colangeli says officers were called to the Integrated Care Hub around 10:40 a.m. after a report of a serious assault.

He says the three victims were all assaulted “in the vicinity,” of the drop-in health centre, not inside.

Police have closed Montreal Street between Railway Street and Hickson Avenue.

This report by The Canadian Press was first published Sept. 12, 2024.

The Canadian Press. All rights reserved.



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Government intervention in Air Canada talks a threat to competition: Transat CEO

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Demands for government intervention in Air Canada labour talks could negatively affect airline competition in Canada, the CEO of travel company Transat AT Inc. said.

“The extension of such an extraordinary intervention to Air Canada would be an undeniable competitive advantage to the detriment of other Canadian airlines,” Annick Guérard told analysts on an earnings conference call on Thursday.

“The time and urgency is now. It is time to restore healthy competition in Canada,” she added.

Air Canada has asked the federal government to be ready to intervene and request arbitration as early as this weekend to avoid disruptions.

Comments on the potential Air Canada pilot strike or lock out came as Transat reported third-quarter financial results.

Guérard recalled Transat’s labour negotiations with its flight attendants earlier this year, which the company said it handled without asking for government intervention.

The airline’s 2,100 flight attendants voted 99 per cent in favour of a strike mandate and twice rejected tentative deals before approving a new collective agreement in late February.

As the collective agreement for Air Transat pilots ends in June next year, Guérard anticipates similar pressure to increase overall wages as seen in Air Canada’s negotiations, but reckons it will come out “as a win, win, win deal.”

“The pilots are preparing on their side, we are preparing on our side and we’re confident that we’re going to come up with a reasonable deal,” she told analysts when asked about the upcoming negotiations.

The parent company of Air Transat reported it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31. The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.

Revenue totalled $736.2 million, down from $746.3 million in the same quarter last year.

On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.

It attributed reduced revenues to lower airline unit revenues, competition, industry-wide overcapacity and economic uncertainty.

Air Transat is also among the airlines facing challenges related to the recall of Pratt & Whitney turbofan jet engines for inspection and repair.

The recall has so far grounded six aircraft, Guérard said on the call.

“We have agreed to financial compensation for grounded aircraft during the 2023-2024 period,” she said. “Alongside this financial compensation, Pratt & Whitney will provide us with two additional spare engines, which we intend to monetize through a sell and lease back transaction.”

Looking ahead, the CEO said she expects consumer demand to remain somewhat uncertain amid high interest rates.

“We are currently seeing ongoing pricing pressure extending into the winter season,” she added. Air Transat is not planning on adding additional aircraft next year but anticipates stability.

“(2025) for us will be much more stable than 2024 in terms of fleet movements and operation, and this will definitely have a positive effect on cost and customer satisfaction as well,” the CEO told analysts.

“We are more and more moving away from all the disruption that we had to go through early in 2024,” she added.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:TRZ)

The Canadian Press. All rights reserved.



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