New uk Chancellor's spending plans raise eyebrows among financial experts
Fresh financial strategy puts £70bn into public services while promising no future tax hikes. Experts question if the math adds up as pressure mounts on ukʼs public spending needs
Rachel Reeves‚ Britainʼs new Chancellor shows clear spending-over-cuts priorities. Earlier this year she picked education funding over income-tax reduction when asked about a theoretical £7bn choice; now shes implementing similar ideas in real-time
The new financial blueprint pumps £70bn yearly into public services (with NHS and schools getting major funding boosts) Her strategy relies on increased borrowing and a £40bn-per-year tax plan thats set to run until parliament ends
Iʼm not coming back with more borrowing or more taxes ... We wonʼt have to do a budget like this ever again
This bold statement reminds experts of a similar promise: back in late-80s George HW Bush made his famous no-taxes pledge which didnt last through his first year. The Business Secretary Jonathan Reynolds already hints at possible future business taxes – though not as big as current ones
Financial think-tanks point to some tricky math: by decade-end theyll need another £9bn yearly just to avoid real-terms budget cuts. The Office for Budget Responsibility notes that Labourʼs defense-spending goals (moving from 2pc to 2.5pc GDP) would need an extra £17bn per-year
Public-sector challenges keep growing – NHS officials say they need 3pc yearly increases just to maintain current service levels. With inflation-linked pay deals already approved the £10bn error margin under new fiscal rules looks paper-thin
Andrew Jones‚ a real-estate CEO gives a sports-style take: “Its like a 90-minute game of football; were not even a quarter way through. I didnt see the Budget as pro-growth but its too early to call“
