San Diego, CA

UK PM Starmer warns of ‘painful' October budget to tackle shortfall in public finances

Published

2 years ago

August 27, 2024

UK PM Starmer warns of ‘painful' October budget to tackle shortfall in public finances

U.K. Prime Minister Keir Starmer on Tuesday told the nation that the upcoming October budget would be “painful,” as he paves the way for government spending cuts to address a £22 billion ($29 billion) financing shortfall.
Starmer said the U.K.’s public finances were “worse than we ever imagined” and that “difficult” decisions lay ahead, after he announced plans to test winter fuel payments made to pensioners.

LONDON — U.K. Prime Minister Keir Starmer on Tuesday told the nation that the upcoming October budget would be “painful,” as he paves the way for spending cuts to address what the government says is a £22 billion ($29 billion) financing shortfall.

“We have no other choice given the situation that we’re in,” Starmer said in a speech in the gardens of 10 Downing Street, the prime minister’s residence.

“Those with the broadest shoulders should bear the heavier burden, that’s why we’re cracking down on non-doms,” he added, referring to U.K. residents whose domicile is outside of the country for tax purposes.

“Those who made the mess should have to do their bit to clean it up, that’s why we’re strengthening the powers of the water regulator and backing tough fines on the water companies who have let sewage flood our rivers, lakes and seas,” Starmer said. “But just as when I responded to the riots, I’ll have to turn to the country and make big asks of you as well, to accept short-term pain for long-term good, the difficult trade-off for the genuine solution.”

Starmer’s Labour party took power in early July following a landslide election victory. The U.K. parliament is on a summer break between July 30 and Sept. 2, although the new government has been navigating challenges including a series of riots around the nation involving far-right groups and a capacity crisis in the prison system.

The Labour administration has meanwhile benefitted from the ongoing fall in inflation, which is hovering around 2%, from the start of interest rate cuts by the politically-independent Bank of England and from the economic return to growth for the past two successive quarters.

In its electoral manifesto, Labour said it would raise £7.35 billion ($9.71 billion) by 2028-29 to fund public services through measures including closing tax loopholes on nondomiciled individuals, removing tax breaks for independent schools, closing what has been described as a “tax loophole” for private equity investors, and introducing a “time-limited windfall tax” on oil and gas firms.

Starmer and Finance Minister Rachel Reeves have repeatedly stated they will prioritize economic growth and fiscal responsibility in their policymaking.

In his Tuesday speech, Starmer said the U.K.’s public finances were “worse than we ever imagined” and accused the previous government of masking a £22 billion “black hole.”

Labour announced the shortfall figure at the end of July and blamed it on overspending and poor budgeting by the previous Conservative government.

Former Finance Minister Jeremy Hunt in July wrote to Simon Case, the head of the British civil service, labeling Labour’s claims about the public finances “deeply troubling.”

Hunt said the alleged £22 billion gap differed from the “main estimates” for spending presented for approval before Members of Parliament on July 17. He added that the disparity in figures risked bringing the politically-neutral civil service into disrepute, since estimates are signed off by its senior officials.

The Institute for Fiscal Studies, an independent research group, has previously argued Labour was aware of the “broad outline” of the size of the deficit and was not upfront during the election campaign about the cuts and tax rises that would be needed to maintain public services.

“Growth — and frankly, by that I do mean wealth creation — is the number one priority of this Labour government,” Starmer said on Tuesday.

Starmer said he had not wanted to take the path to means test the Winter Fuel Payment, a payout for pensions, in a move that has been controversial even within his own party — but added that more “difficult” decisions would come.

Starmer said taxes would not rise for “working people” in the October budget, although he did not supply additional details. Labour has previously pledged not to increase value added tax, national insurance — a general taxation — or income tax.

The speech was criticized by politicians from other parties.

“Keir Starmer says cutting the winter fuel payment is a choice he had to make. But when asked about a wealth tax – Rachel Reeves said their spending commitments didn’t require extra investment. So his tough choices are to not tax wealth of billionaires,” Zack Polanski, deputy leader of the Green Party, said on social media network X.

Conservative politician Kemi Badenoch, a frontrunner to replace Rishi Sunak as party leader, said the speech showed that Starmer “campaigned on promises he couldn’t deliver and now he is being found out,” according to BBC News.

Liberal Democrats leader Ed Davey meanwhile stated that the Conservatives left a “toxic legacy” that needed “bold and ambitious action from the government to fix.”

CNBC has contacted the Conservatives for comment.

Financial markets and investors are still waiting for concrete announcements from the government, David Denton, technical consultant at investment management firm Quilter Cheviot, said in a note.

“During Labour’s election campaign, the party emphasised the various taxes it would not seek to raise, such as National Insurance, VAT, and income tax. Therefore, an increase in Capital Gains Tax (CGT) seems plausible,” Denton said. “An alignment with income tax rates or even a minimal increase might impact investor behaviour.”

He added, “Another potential problem is that unless anti-forestalling measures are announced with any plans, we could see a surge in property on the market as homeowners rush to sell investment properties before new legislation comes into place.”

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San Diego, CA

UNLV faces San Diego State after Hamilton’s 24-point performance

Published

1 hour ago

March 5, 2026

Press Room

UNLV faces San Diego State after Hamilton’s 24-point performance

UNLV Rebels (16-14, 11-8 MWC) at San Diego State Aztecs (19-10, 13-6 MWC)

San Diego; Friday, 10 p.m. EST

BOTTOM LINE: UNLV faces San Diego State after Kimani Hamilton scored 24 points in UNLV’s 92-65 victory over the Utah State Aggies.

The Aztecs have gone 13-2 in home games. San Diego State is eighth in the MWC with 9.0 offensive rebounds per game led by Miles Heide averaging 2.0.

The Rebels have gone 11-8 against MWC opponents. UNLV ranks eighth in the MWC shooting 34.4% from 3-point range.

San Diego State averages 79.1 points per game, 0.6 more points than the 78.5 UNLV gives up. UNLV averages 7.2 made 3-pointers per game this season, 1.9 fewer made shots on average than the 9.1 per game San Diego State allows.

The teams play for the second time in conference play this season. San Diego State won the last meeting 82-71 on Jan. 24. Miles Byrd scored 23 points points to help lead the Aztecs to the win.

TOP PERFORMERS: Reese Dixon-Waters is shooting 35.9% from beyond the arc with 1.6 made 3-pointers per game for the Aztecs, while averaging 13 points. Byrd is averaging 10.2 points and 5.1 rebounds over the past 10 games.

Dra Gibbs-Lawhorn is shooting 50.9% and averaging 20.6 points for the Rebels. Hamilton is averaging 1.4 made 3-pointers over the last 10 games.

LAST 10 GAMES: Aztecs: 5-5, averaging 74.9 points, 28.9 rebounds, 13.7 assists, 6.9 steals and 4.2 blocks per game while shooting 46.4% from the field. Their opponents have averaged 69.0 points per game.

Rebels: 6-4, averaging 84.1 points, 32.3 rebounds, 14.7 assists, 6.4 steals and 4.8 blocks per game while shooting 50.0% from the field. Their opponents have averaged 80.8 points.

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The Associated Press created this story using technology provided by Data Skrive and data from Sportradar.

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San Diego, CA

Military bases in San Diego County increase security following Iran attacks

Published

13 hours ago

March 4, 2026

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Military bases in San Diego County increase security following Iran attacks

SAN DIEGO (CNS) – Military bases in San Diego County and nationwide have increased security measures due to last weekend’s U.S.-Israeli attacks on Iran, prompting traffic delays near base entrances, enhanced ID checks and access restrictions.

The Naval Air Station North Island on Coronado ports three aircraft carriers, including the San Diego-based USS Abraham Lincoln, which led some of the first-wave attacks on Saturday.

Naval Base Coronado warned motorists of possible traffic delays at all base entry points due to the increased security measures.

Targets included Islamic Revolutionary Guard Corps command and control facilities, Iranian air defense capabilities, missile and drone launch sites and military airfields.

The U.S. operation, dubbed “Epic Fury,” and Israeli operation, “Raging Lion,” began striking targets at 1:15 a.m. Eastern Time Saturday.

As of Tuesday, at least six U.S. service members had been killed in action.

The strikes also killed Iranian Supreme Leader Ali Hosseini Khamenei, who had been Iran’s supreme leader since 1989, making him the longest-serving head of state in the Middle East.

Iran’s offensive forces claimed to have struck USS Abraham Lincoln with ballistic missiles, but according to an X post from U.S central Command, “The Lincoln was not hit. The missiles launched didn’t even come close. The Lincoln continues to launch aircraft in support of CENTCOM’s relentless campaign to defend the American people by eliminating threats from the Iranian regime.”

Those with concerns regarding the heightened security can contact San Diego County’s Office of Emergency Services at 858-565-3490 or oes@sdcounty.ca.gov.

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San Diego, CA

SD Unified moves forward with layoffs of classified employees

Published

1 day ago

March 4, 2026

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SD Unified moves forward with layoffs of classified employees

SAN DIEGO (KGTV) — Less than 3 weeks after the San Diego Unified School District finalized a new contract with teachers, the school board voted unanimously on Tuesday to move forward with layoff notices for other district employees.

The layoffs affect classified employees — workers who are employed by the district but are not teachers and are not certified. That includes bus drivers, custodians, special education and teacher aides, and cafeteria workers.

The district says it is eliminating 221 positions — 133 that are currently filled and 88 that are vacant — to save $19 million and help address a projected $47 million deficit for the next fiscal year.

Preliminary layoff notices will go out on March 15, with final notices by May 15.

The district estimates about 200 classified employees will receive preliminary notices, but of them, about 70 are expected to lose their jobs based on union-negotiated bumping rules.

Bumping allows employees with more seniority to move into another position in the same classification, thereby “bumping” a less senior employee out of that role.

Lupe Murray, an early childhood special education parafacilitator with the district, said the news came as a shock after the teacher strike was called off.

“When the strike was called off, I’m like, ‘Yes!’ So then when I got the email from the Superintendent, I’m like, ‘Wait, what?’ So, I think everyone was shocked,” Murray said.

The district says it sends out annual layoff notices, as all districts in the state do.

Before Tuesday’s board meeting, classified employees rallied outside, made up of CSEA (California School Employees Association) Chapters OTBS 788, Paraeducators 759, and OSS 724. They were joined by parents, students, and the San Diego & Imperial Counties Labor Council, AFL-CIO.

Miguel Arellano, a paraeducator independence facilitator with San Diego Unified and a representative of San Diego Paraeducators Cahpter 759.

“What do we want? No layoffs! When do we want it? Now!” the crowd chanted.

Arellano said he felt compelled to act when he learned about the potential layoffs.

“The first thing that went through my mind was that I need to speak up. I need to protect these people,” Arellano said.

Inside the meeting, the board heard emotional, at times tearful testimony from classified employees before voting unanimously to move forward with the layoff schedule.

Superintendent Fabi Bagula said the district has tried to protect classrooms from the cuts.

“We have tried our best to only, I mean, to not touch the school. Or the classroom. But now it’s at the point where it’s getting a little bit harder,” Bagula said. “What I’m still hoping, or what I’m still working toward, because we’re still in negotiations, is that we’re able to actually come to a win-win, where there’s positions and availability and maybe even promotions for folks that are impacted.”

Arellano warned the layoffs could have a direct impact on students.

“We are already spread thin, so, with more of a case load, it’s going to be impossible to be able to service all the students that we need to have,” Arellano said.

Follow ABC 10News Anchor Max Goldwasser on Instagram, Facebook, and Twitter.

This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.

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