The OBR stated that while Labour's budget would expand the economy slightly in the first two years, it will ultimately yield no economic benefit from the £70 billion of extra annual spending.
The IFS called the budget a brave investment for the UK's long-term future, noting that the benefits would likely only materialize after the next election.
Contrary to the OBR's view, the IPPR argued that Labour's investment spending could enhance private sector investment, contradicting the notion of a zero-sum game and potentially boosting growth.
Rachel Reeves faces not only a £22 billion financing gap but also significant underspends in critical areas like education and health, making it hard to improve services.
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