Part 6/11:
One notable decision was to eliminate the two-child limit on welfare payments—a move likely to reduce child poverty but also increasing public spending further. Overall, public expenditure has soared by roughly 5 percentage points of GDP compared to pre-pandemic levels. Such high spending levels raise questions about fiscal discipline and long-term sustainability.
Furthermore, many of the proposed tax hikes are either delayed or uncertain, with some not set to take effect until 2029—by which time the next general election will have occurred. This approach essentially postpones difficult decisions, creating a scenario of increased borrowing now and potential tax increases later, which may or may not materialize.