Newscast One Year of Labour: What’s Next?
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Jul 5, 2025 Laura and Paddy celebrate the Labour government's one-year mark while pondering its uncertain future. Discussions revolve around financial dilemmas, including the contentious two-child benefit cap and budgeting challenges amid economic strain. The pair critically examine internal party tensions, especially regarding special needs funding. They also speculate on Keir Starmer's leadership as local elections approach and discuss how strikes might impact the party's strategy ahead of the crucial May 2026 elections.
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Tight Fiscal Space Ahead
- The autumn budget will be the biggest political event, with limited spending flexibility due to economic constraints.
- Chancellor Rachel Reeves openly acknowledges the tight financial situation and the potential need for tax rises.
Two-Child Benefit Cap Debate
- Lifting the two-child benefit cap will be a major political battle within Labour.
- Many Labour backbenchers, including prominent figures like Gordon Brown, want the cap removed despite polling uncertainties.
Special Needs Education Crisis
- Special needs education funding is a brewing controversy with rising demand and high costs.
- The government aims to improve services for families but faces significant challenges balancing costs and needs.