Skip to main content
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.
Similar stories
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

Chancellor of the Exchequer Rachel Reeves speaks to nurses and members of the media during a visit to the University College London Hospital after she delivered her Budget, November 26, 2025
Economy / 26 November 2025
26 November 2025
WE MUST DO BETTER: Jon Trickett speaks in the House of Commons, September 10 2025
Labour Conference 2025 / 29 September 2025
29 September 2025

We cannot refuse to abolish the unjustifiable two-child benefit cap that pushes children into poverty while finding billions of pounds for defence spending — the membership and the public expect better from Labour, writes JON TRICKETT MP

CRINGING SERVILITY: Sir Keir Starmer picks up UK US trade deal papers dropped by Donald Trump at the G7 summit in Kananaskis, Alberta, Canada, June 16 2025
Features / 5 July 2025
5 July 2025

Under current policy, welfare cuts are just a small downpayment on future austerity, argues MICHAEL BURKE