The new Keir Starmer government claimed the United Kingdom faces a grave state of affairs because of the policies of its predecessors in the face of the Conservative Party, AP News said.
Ahead of a major speech on the state of the public finances, which looks set to lay the groundwork for tax rises, the new left-wing government has declared the terrible state the UK is in because of 14 years of Conservative Party rule. The statement came a day before Treasury chief Rachel Reeves is expected to announce a £20 billion ($26 billion) public finance deficit during a speech in the House of Commons.
Earlier, the government published a review of the spending review, which Treasury chief commissioned shortly after taking office. It is due to give a full report to parliament on Monday. The findings have thus prompted the new government to accuse the Conservatives of making significant financial commitments for this financial year which they would not be able to honour.
Starmer’s office has consequently pointed to recent comments by former Treasury chief Jeremy Hunt confirming that he would not have been able to cut taxes this year if the Conservatives had returned to power. The Conservatives, as part of their rhetoric, have promised further tax cuts in the autumn if they return to power. The survey indicates that at a time of growing global threats, the army is in a state of decline, while the National Health Service has collapsed and some 7.6 million people are waiting for medical care.
Besides, the migrant issue remains one of the most pressing as the number of people crossing the Channel is still on the rise, despite spending money to address the migrant problem, Starmer’s office said. For instance, roughly 15,832 people have already crossed the Channel in small boats this year, a 9 per cent increase on the same period in 2023.
Paul Johnson, director of the Institute for Fiscal Studies, an independent think tank focused on Britain’s economic policies, suggests the government’s predicament should come as no surprise. Except, the new government will have to either raise taxes, cut spending or relax government borrowing rules to address the dire fiscal situation.
“The assessment will show that Britain is broke and broken – revealing the mess that populist politics has made of the economy and public services,” Downing Street said.
