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Keir Starmer and Rachel Reeves made one huge mistake before Budget disaster

by DD Staff

December 02, 2024

Keir Starmer and Rachel Reeves

key takeaways

The 2024 budget of the Labour Government has a peculiar quality. Instead of lasting months, the media debate over a budget typically concludes in a matter of days.

As the discussion goes on, this is not the case with this budget. According to a recent CBI research, restricting tax breaks for family-owned enterprises might result in the loss of 125,000 employment, which would also result in a sharp decline in economic activity.

As businesses realize the numerous detrimental effects it will have on their operations, this budget merely continues becoming bigger. Given that it will eliminate jobs throughout the economy, this budget is extremely rare. This budget has nothing good to say about it.

This budget should also be placed in relation to the planned increase in workers' rights, and combined these two policies will destroy many jobs.

The problem for this Labour Government is that they spent for too long stating that the last government had broken the UK and that the country was in crisis. With this Labour Government, there was going to be the start of a new dawn of economic growth and high-quality public service provision.

However, Labour fell into a policy prioritization trap. They claimed that there was a £22 billion blackhole that needed to be filled.

Reflect on this claim. There was no such blackhole and if such a blackhole exists, then this reflects Labour's failure in opposition to hold the last Conservative Government to account.

To solve the £22billion blackhole, Labour decided to raise £40 billion by taxing job makers rather than job takers. The outcome is a budget that has undermined economic growth and is destroying jobs.

There is only one word to describe this approach - madness. However, this madness comes from Labour's stupid promise not to raise taxes on people who go out to work. Thus, the budget protected job takers, but in doing so destroyed jobs.

Rachel Reeves and Keir Starmer continue to state that they had no alternative. There was an alternative. They should have had a budget that encouraged companies to invest and to create economic growth that then would have led to an increase in the government's tax take.

However, remember that foolish election promise, not to tax that who go out to work. The outcome of this foolish promise is that we will all be much worse off under this government. I am not looking forward to the next five years and under this government the UK's economy will underperform. One could even go as far as arguing that this is a government that is breaking Britain.