As the political debate increases, the Conservatives want to save spending, and Labor wants to increase spending on reproduction.
Goldman Sachs took the trouble to read the platforms of the two main parties in the United Kingdom and concluded that the Conservatives intend to reduce tax revenues by 11.2 billion pounds (about 13.3 billion euros) annually by 2029. This requires cutting spending by 11.5 billion pounds annually, “which “It means very limited spending,” which the advisor seems to doubt.
Instead, Labor aims to raise spending by around £9.5bn (€11.3bn) a year on current spending, with an £8.6bn increase in tax revenue to offset the impact on debt.
In this context, the North American company’s forecasts indicate that the proposed labor policy – with a slight increase in spending and taxes – “will lead to slightly stronger demand in the coming years.” This demand is likely to be about 0.25% higher than under the governors’ proposals through fiscal year 2028.
“This difference is slightly larger than our previous estimates, with new Conservative promises on welfare spending and Social Security contributions representing the largest changes.
Although both configurations’ plans imply that fiscal consolidation will continue broadly in line with current expectations, we continue to believe that risks are tilted towards a slower adjustment to the initial balance. In particular, there is a moderate possibility that the next government will change fiscal rules to target total net debt rather than core public sector debt.
