THE BRITISH PUBLIC will tomorrow hear the first budget by the Labour government where tax increases and spending squeezes are likely to damage it’s standings with the electorate.
In August, Prime Minister Keir Starmer warned that a “painful” budget was lying in wait for the British public after the Labour party discovered that the previously Conservative Government had borrowed and spent billions more than it had disclosed.
The developments severely disrupted the promises made by the Labour party before the most-recent general election – where it secured a landslide victory on the momentum from the public to oust the Tory government and seek a fresh faces in Westminster.
Public spending minister, or Chancellor, Rachel Reeves and other Labour ministers have been quick to defend these now impossible promises by pointing to the “black hole” in the public accounts it inherited from the Conservatives.
Pundits believe the Labour cabinet will front load the budget announcement with the benefits people will see – which includes a 6.7% increase to the minimum wage and additional funding for the NHS.
But the pay increase had been recommended by the UK’s Low Pay Commission this year and additional funding for the healthcare system – which had been promised by the Tory government since Brexit – has largely landed as a populist decision with the public.
In reality, the devil will be in the detail as large increases in taxes, cutbacks on public spending and squeezes in non-essential services are expected to be announced so the Government can revive the public accounts.
Anger erupted last month after it was announced the Government would be limiting the number of pensioners who can avail of allowances for fuel during the winter after it warned earlier this month that it needed to slash costs.
Estimates suggest that the decision impacted 9.5 million people. The payment was kept in place for only the poorest pensioners in the country in an effort to cut back as must as possible.
Conservative Party spokesperson, or shadow secretary, for work and pensions Mel Stride has continued to protest against the decision to limit the winter fuel allowance to all but the poorest pensioners.
He told the PA news agency that a petition calling on the Government to think again has “over a quarter of a million signatures”, adding “many” pensioners are going to “really, really struggle”.
The move generated significant bad press for the Government at the time and impacted its approval ratings with the public as a result. Some who had voted for Labour felt they were given false promises, regardless of the black hole in the public accounts.
Reeves will tomorrow pledge that her budget will put “more pounds in people’s pockets”, fix the NHS and grow the economy, despite the warnings the tough decisions are to come.
She is expected to say the “prize on offer” for Labour’s plans is “immense”, and will lay out new funding to cut hospital waiting lists, pave the way for more affordable homes and rebuild crumbling schools.
Additional reporting by Press Association
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