In an indirect warning to Keir Starmer, Tony Blair warned that taking more money out of people’s pockets would make them feel disillusioned with politics.
According to the former prime minister, poor public services, along with raised levels of taxation, public debt, and spending, are adding to public frustration not just in Britain but in every developed nation.
Writing in the Daily Mail, Sir Tony said we live in an era of disruption, including in politics, and Britain faces the same dilemma.
He added: « Our taxes are high; our spending and levels of public debt are high; and our service outcomes are poor. »
The former PM continued: « That is why politics is being disrupted. Any politician today, who is promising management of the status quo and not fundamental change of it, will lose. »
Blair’s suggestion that high taxes alienate voters and disrupt politics is particularly significant in the UK, as it comes after Chancellor Rachel Reeves introduced £40 billion worth of taxes in her first budget.
It amounts to the biggest tax rise in 30 years, but companies will bear much of the burden, leading some to complain they won’t be able to invest in boosting productivity to help generate the economic growth the Government is dreaming of.
The Chancellor’s biggest revenue raiser is an increase in employer tax, which is expected to raise £25bn per year. The move has prompted consternation within businesses and warnings of lower wages and job cuts.
In her Budget speech, Ms Reeves argued that she is asking businesses to contribute more, telling Parliament that successful businesses depend on successful schools, healthy firms need a healthy NHS, and a strong economy is dependent on strong public finances.
Mr Blair, who was Labour prime minister from 1997 to 2007, warned the UK’s present dilemma led to a splintering of the vote at the general election in July when MPs were elected from the Greens, Reform UK and independents.
Sir Tony argues in his op-ed that lower taxes, reduced spending and better public service outcomes often appear to be « the Holy Grail of governing », but modern technology « puts it within reach ».
He went on to champion digital ID as « a good place to start », despite the Government having ruled out ID cards. Sir Tony said crime rates could be cut thanks to facial recognition, data and DNA while interactive app could provide pupils with personal tutoring.
The former PM said the financial and energy crises, changes to the global economy, the COVID-19 pandemic, Britain’s Brexit vote, and frequent changes in the UK’s leadership have taken their toll.
He argued that the challenges of governing today are « infinitely harder », but a technology revolution has the potential to be transformative.
Sir Tony went on to outline the benefits in health, welfare, and immigration that could accrue from a « once-in-a-generation » shake-up of the system.
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