UK Faces Looming Budget Crisis; Politicians Reluctant to Tackle Spending
-
Britain faces a likely budget crisis in the next parliament due to unsustainable spending levels, but politicians are afraid to cut spending.
-
At some point, the money will run out and spending cuts will become unavoidable, as happened in the UK in 1976 when the IMF bailed out Britain.
-
Ireland made big spending cuts after the 2009 crisis and has grown faster than the UK since. Britain may need something similar.
-
Starmer could make gradual cuts now to avoid bigger ones later, stimulate growth to reduce spending as a % of GDP, bring in more private healthcare, build more houses, and cut benefits like the pension triple lock.
-
But more likely, like past Labour leaders, he'll leave action too late and face an economic meltdown forcing harsh cuts.