Skip to main content
The Morning Star Shop
Austerity is a political choice not an economic necessity
The Tory government is sticking to plans for more austerity, no matter what the economic or human consequences, writes Ken Livingstone

Since my last Morning Star column, a leading think tank has forecast a £25 billion hole in the public finances by the end of the current parliament.

The Institute for Fiscal Studies (IFS) report says that lower growth forecasts and higher inflation will leave government tax receipts £31bn worse off in 2019-2020 — turning a forecast surplus of £14.9bn into a deficit of £10.4bn.

Additionally, an internal briefing document showing that the government is “unlikely to bring deficit reduction entirely back on track” was mistakenly posted online.

The 95th Anniversary Appeal
Support the Morning Star
You have reached the free limit.
Subscribe to continue reading.
More from this author
Keir Starmer
Editorial / 23 May 2025
23 May 2025
Chancellor of the Exchequer Rachel Reeves speaks with the media at the Rolls-Royce factory in Derby, following the announcement from the Office for National Statistics that the UK economy grew by 0.7% between January and March, May 15, 2025
Editorial: / 15 May 2025
15 May 2025
Similar stories
DAMAGING AGENDA:
Work and Pensions
Secretary Liz Kendall
Features / 24 February 2025
24 February 2025
Labour is deliberately continuing Tory policies that cost us £38 billion more than they save while driving illness rates higher — despite the evidence that previous sanctions doubled suicide attempts, writes CLAUDIA WEBBE
Chancellor of the Exchequer Rachel Reeves at the Confederati
Features / 14 January 2025
14 January 2025
Instead of responding to changed circumstances by adjusting policy, Reeves is using fiscal ‘rules’ as an excuse to force government departments to make even deeper cuts than she had already flagged, says CLAUDIA WEBBE
Features / 3 November 2024
3 November 2024
In the first of two articles, ROBERT GRIFFITHS argues that despite a parliamentary majority, Labour’s timid Budget fails to seize a historic opportunity and lacks the ambition needed to address Britain’s deep social and economic crises
(L to R) Rachel Reeves with the ministerial red box; Songi c
Features / 2 November 2024
2 November 2024
Comparing Budget measures to fictional Tory plans rather than actual spending levels conceals continued austerity, argues DIANE ABBOTT MP, as workers face stealth tax increases to bear the cost of economic stagnation