The Guardian view on economic decline: Labour can break the doom loop | Editorial
Keir Starmer has earned the right to tell a different story about the way Britain’s economy can workRishi Sunak has a two-stage economic strategy for Conservative recovery in time for the next election. First, bring down inflation. Second, hope that growth returns fast enough to revive public confidence. The problem is that the measures currently preferred for completing stage one make arrival at stage two less likely.The condition of public services is a case in point. Earlier this week, Jeremy Hunt said the Treasury would not raise new revenue to fund higher wages in the public sector. Current budgets envisage 3.5% increases, while the independent pay review body recommends a range of 5% to 6.5% – still a cut in real terms. The chancellor rules out borrowing or raising taxes to finance even modest pay rises, preferring departmental cuts, which would further degrade frontline services. Continue reading...
Keir Starmer has earned the right to tell a different story about the way Britain’s economy can work
Rishi Sunak has a two-stage economic strategy for Conservative recovery in time for the next election. First, bring down inflation. Second, hope that growth returns fast enough to revive public confidence. The problem is that the measures currently preferred for completing stage one make arrival at stage two less likely.
The condition of public services is a case in point. Earlier this week, Jeremy Hunt said the Treasury would not raise new revenue to fund higher wages in the public sector. Current budgets envisage 3.5% increases, while the independent pay review body recommends a range of 5% to 6.5% – still a cut in real terms. The chancellor rules out borrowing or raising taxes to finance even modest pay rises, preferring departmental cuts, which would further degrade frontline services.
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