Politics expert Dr Steve McCabe with analysis on the tough economic decisions faced by the new Labour government.
Category
🗞
NewsTranscript
00:00Well, Labour came in promising there was going to be a change for the better and they were
00:06going to give us honesty and undoubtedly of course there are financial problems which
00:10are actually baked in. The Office of Budget Responsibility which looks at the figures
00:15that even if the previous government had won, we're fully aware that they were going to
00:19have to make fairly stringent cuts in terms of trying to balance the budget and not get
00:24into what I call a Liz Truss situation where you're spending way beyond your means because
00:28quite clearly the government is worried about the international markets taking fright and
00:34putting interest rates up. And of course as we know there's a lot of international difficulties.
00:39So therefore Labour got in, they've told us that there was a £22 million back hole, now
00:44we're talking about the fact that they need £40 billion and of course they're promising
00:49to improve public services including most especially the health service. So of course
00:54they need all this extra money. So they've kind of forewarned us that things are going
00:57to be very difficult.