Spending review: Labour's economy is austerity for the taxpayer
Briefly

The article critiques the Chancellor's Spending Review, highlighting that 'austerity' includes tax hikes alongside spending cuts. John O'Connell warns of increased tax burdens resulting from the government's commitment to an additional £190bn in spending, primarily within the health sector. This focus on health spending may detract from other critical areas like education and the Home Office. With a significant portion of funding allocated to the NHS, concerns arise about the overall impact on public sector effectiveness and workforce challenges.
What was announced was more spending equivalent to an additional £190bn over the parliamentary term.
Austerity isn't just about reducing public expenditure - it also applies to tax hikes.
The increase in day-to-day spending for the Department of Health and Social Care alone makes up half the cash increase in the government's overall expenditure plan.
There is a planned three per cent annual increase in day-to-day NHS spending - an extra £55.1bn per year for the health service by 2028-29 compared to 2023-24.
Read at City AM
[
|
]