LABOUR PARTY’S Economic Plan Under Fire: Will It Really Work?
— Britain’s new Treasury chief, Rachel Reeves, vows to run the economy with “iron discipline.” She hinted at above-inflation pay raises for public sector workers to end ongoing strikes.
The Labour Party, elected two weeks ago, faces pressure to increase salaries and welfare without raising taxes or public borrowing. Reeves criticized the previous Conservative government for high taxes and debt.
Labour won a landslide victory on promises of economic growth, housebuilding, green energy projects, and improved public services. The electorate seeks relief from high living costs and past economic mismanagement.
Inflation has dropped to 2%, but strikes by hospital doctors strain the National Health Service. Other public-sector workers like nurses and teachers have also demanded higher pay through walkouts over the past year.