Authored by Phil Mullan via Spiked,
A budget is not just about the public finances. It is the annual economic set-piece where the government presents its broader aims and strategy. For a new administration especially, the first budget statement is a defining marker of its approach to running the country. It is where the promises hit the wall of financial reality.
In this respect, the first Keir Starmer and Rachel Reeves budget in 2024 spotlighted their administration's caution as well as its untrustworthiness. Ludicrously, the pair claimed to have been unaware of the abysmal state of Britain's finances and sought to blame their predecessors for their own spending decisions. Reeves increased taxes by about £40 billion despite a manifesto that had tried to rid Labour of its reputation as a tax-raising party. Her budget announcements set taxes on a path to record highs, putting paid to her earlier pro-growth rhetoric.
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