Labour could be undermined by its definition of 'working people' and risks bringing on yet more 'national gloom' after the Budget
Labour could be undermined by its definition of 'working people' and risks bringing on yet more 'national gloom' after the BudgetThe Prime Minister has been managing expectations for months, warning that this Budget will include tough choices but that any pain will be worth it.
The Government has said it’s not raising income tax, national insurance or VAT, but other taxes are set to be increased to fill the so-called £22bn “black hole” the Chancellor has claimed she is grappling with. The Prime Minister doesn’t think so. He told reporters at a Commonwealth leaders’ summit in Samoa that such people “wouldn’t come within my definition” of working people.
Depending on the tax rises, this particular manifesto commitment could prove a pitfall for Labour as they attempt to prove that the Chancellor has not breached it.Liz Truss’s tenure as prime minister may have been famously outlived by a lettuce, but it is the markets that ultimately led to her downfall.
There have been warnings that the Chancellor’s plans to change fiscal rules to free up £50bn in borrowing power could have difficult consequences. These early signs show that the Chancellor will need to be careful how she spends this extra borrowing power in the Budget if she wants to avoid upsetting the markets and any negative consquences for the public.The Chancellor has made it clear that there will be “no return to austerity” as a result of her Budget. This pledge is important because, as some would argue, the effects of the last round of austerity are still being felt today.
Any return to austerity, perceived or otherwise, could be politically risky for the new government, and Labour may have a tough time convincing the public of the necessity of any cuts.Labour has already had its fair share of difficulty in justifying its cost-saving choices to the public, many of whom are already feeling sceptical about the party’s ability to bring about change.
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