Political Fix New chancellor, new rules
Oct 25, 2024
Joining the conversation are Anna Gross, a political correspondent for the Financial Times, and Lauren Fedor, deputy Washington bureau chief. They delve into Rachel Reeves' ambitious fiscal rule changes aimed at boosting UK infrastructure spending as market reactions loom large. The discussion shifts to Sir Keir Starmer's precarious position amid reparations debates in Samoa and Donald Trump’s election interference allegations against Labour. Expect insightful commentary on the intersections of UK policy and US politics in a rapidly changing landscape.
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Fiscal Rule Changes
- Rachel Reeves will change how government debt is measured, allowing more borrowing for infrastructure.
- This aims to boost growth, but may increase borrowing costs and mortgage rates.
Stealth Tax
- Reeves will likely freeze income tax thresholds past 2028, generating £7 billion.
- This 'stealth tax' may not resonate with the public immediately, but impacts take-home pay.
Overseas Aid Cut
- UK overseas aid spending may fall to 0.36% of GNI next year, well below the 0.7% target.
- This impacts UK's reputation and could affect international development efforts.