The News Agents Does Labour need to own its move to the Left?
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Nov 27, 2025 
Lucy Powell, Deputy Leader of the Labour Party, dives into the recent Budget's implications for the party and the nation. She defends the Budget's goals, emphasizing investments to reduce child poverty and enhance the NHS, while addressing the tension between manifesto pledges and tax increases. Powell argues the measures align with Labour's values, advocating for a fairer tax system, including changes like a mansion tax. She also contemplates the pressures of party unity and the path forward in a shifting political landscape.
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Budget Signals Return To Social Democracy
- The Budget marks a clear shift toward bigger state and higher taxes funded social democracy.
- Labour is financing spending largely through tax rises rather than cuts, reversing the Osborne model.
Growth Promises Versus Budget Reality
- Labour campaigned on growth but the Budget contains few measures that materially increase productivity.
- The OBR found none of the Budget's policies justify raising potential output forecasts.
Fiscal Drag Is Tax Rise In Disguise
- Freezing income tax thresholds (fiscal drag) functions like an effective tax rise over a decade.
- Public notice may grow as fiscal drag compounds and Labour risks failing to explain the change clearly.