How is Labour able to spend so much in its manifesto?
1. More tax
1. More tax
How is Labour able to spend so much in its manifesto?
2. Relax fiscal rules. Under Lab they only have to balance *current* spending, not investment - and they will define the difference themselves. Their goal is to always be able to promise balance at a point 5 yrs in future
2. Relax fiscal rules. Under Lab they only have to balance *current* spending, not investment - and they will define the difference themselves. Their goal is to always be able to promise balance at a point 5 yrs in future
How is Labour able to spend so much in its manifesto?
3. Change public sector balance sheet rules
3. Change public sector balance sheet rules
How is Labour able to spend so much in its manifesto?
4. Say nationalisations are fiscally neutral - as an asset comes on books
4. Say nationalisations are fiscally neutral - as an asset comes on books
How is Labour able to spend so much in its manifesto?
5. Promising to scrap fiscal rules if there’s another downturn and Monetary Policy - Quantitative Easing - doesn’t seem to be working
5. Promising to scrap fiscal rules if there’s another downturn and Monetary Policy - Quantitative Easing - doesn’t seem to be working
How is Labour able to spend so much in its manifesto?
6. Assume more public spending means more tax revenue - £5bn here
6. Assume more public spending means more tax revenue - £5bn here
How is Labour able to spend so much in its manifesto?
7. Reject arguments that corporation tax yield will go down over time as behaviour changes
7. Reject arguments that corporation tax yield will go down over time as behaviour changes
How is Labour able to spend so much in its manifesto?
8. Arguing borrowing can “pay for itself” by increasing size of economy
8. Arguing borrowing can “pay for itself” by increasing size of economy
Labour point out they have built in £6bn headroom - wiggle room, against their fiscal rules - in their plans
How is Labour able to spend so much in its manifesto?
9. Exclude 32 hour working week (because it’s a 10 year plan and costings are for 23/24)
9. Exclude 32 hour working week (because it’s a 10 year plan and costings are for 23/24)
How is Labour able to spend so much in its manifesto?
10. Exclude some one off items from costings
10. Exclude some one off items from costings
