Skip to main content
As Tory logic disintegrates, they double down on their destruction
Although the government is starting to admit there is enough money to meet some of the demands it said were not possible, the austerity Budget shows it's still coming for what's left of the welfare state, writes DIANE ABBOTT MP

JEREMY HUNT’S first Budget was a continuation of the stream of austerity policies that has been almost uninterrupted since 2010. They represent yet another attack on ordinary people struggling to get by. At the same time, the commitments to growth are meaningless without any effective policies to deliver them.

Perhaps worst of all, rather than attempting to tame inflation, the government has used it to impose accelerated real-terms cuts in public spending including public-sector pay. They also plan more of the same.

The verdict from the Office for Budget Responsibility (OBR) was damning. They described the outcome as Britain facing “its biggest fall in spending power for 70 years as the surging cost of living eats into wages.”

The 95th Anniversary Appeal
Support the Morning Star
You have reached the free limit.
Subscribe to continue reading.
Similar stories
British Army drone
TUC Congress 2026 / 14 September 2026
14 September 2026

Austerity and the cost-of-living crisis affecting millions of working people cannot be separated from public-sector cuts to fuel the military, argue BOB ORAM and MAGGIE SIMPSON

‘NOT A GIMMICK’: Andy Burnham at the National Economic Council meeting at No 10 North in Heron House, central Manchester, July 24 2026
Features / 31 July 2026
31 July 2026

A sharp rise in public-sector investment is required to kick-start the economy, argues MICHAEL BURKE

Prime Minister Sir Keir Starmer tours Palantir Technologies headquarters with company employees and British military personnel in Washington DC, February 27, 2025
Politics / 4 July 2026
4 July 2026

Only an ambitious programme of state-led investment can restore growth and improve living standards, argues MICHAEL BURKE

Chancellor of the Exchequer Rachel Reeves stands next to Prime Minister Sir Keir Starmer as he acknowledges guests during a visit to the Benn Partnership Centre, a community centre in Rugby, Warwickshire, November 27, 2025
Features / 28 November 2025
28 November 2025

The 2025 Budget shores up the PM’s political position with headline-grabbing welfare U-turns, but with no improvements on offer to declining public services or living standards, writes MICHAEL BURKE