U.K. Budget Makes a Big Bet on Spending for Growth

Published On Oct 31, 2024, 1:34 PM

The Labour Party in the UK has announced a significant budget focusing on economic growth and public services, with plans to increase public spending by about £70 billion annually over the next five years. Half of this will be funded through tax increases on employers, while the remainder will come from increased borrowing. The budget includes £100 billion earmarked for investments, particularly in the National Health Service and other public services. However, analysts suggest that the tax burden on employers could lead to decreased wage growth for employees.