The New Statesman | UK politics and culture
Budget 2024: Will Labour's gamble pay off?
Oct 31, 2024
Ben Zaranko, a Senior Research Economist at the Institute for Fiscal Studies, breaks down Labour's first budget in nearly 15 years. They discuss the £40 billion tax increase's impact on public spending and the NHS. The conversation delves into the risks tied to increased borrowing and the shift toward a social democracy strategy. Zaranko highlights potential long-term benefits of frontloading investment, while also considering the global economic challenges and implications of US elections on UK trade.
26:09
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- The Labour budget presents significant tax increases aimed at enhancing public spending, particularly for the NHS, which has raised concerns about traditional interventionism.
- There are risks associated with the budget's reliance on increased borrowing and taxation, potentially straining businesses and complicating long-term growth strategies if anticipated returns are not realized.
Deep dives
Impact of the New Budget
The recent budget has introduced significant increases in taxes aimed at boosting public spending, particularly for the NHS. There is a notable concern among critics that this budget resembles a traditional Labour approach, marked by a large scope of interventionism. The aim is to set the country on a different trajectory, addressing long-term issues, but there are immediate risks tied to bond market reactions, given the increased borrowing. The budget is seen as a gamble; while designed to foster growth through investments, there is skepticism about whether businesses will respond positively, especially in light of the new regulations concerning workers' rights and increased contributions.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
