London Daily

Focus on the big picture.
Monday, Mar 09, 2026

A tale of two finance ministers: UK election rivals promise big spending

A tale of two finance ministers: UK election rivals promise big spending

Two men are vying to be Britain’s finance minister. One is a former banker who hangs a portrait of free-markets champion Margaret Thatcher on his office wall, the other is a proud socialist intent on overthrowing capitalism.

On Thursday, Conservative incumbent Sajid Javid and the Labour Party’s would-be finance minister John McDonnell used speeches to argue that the Dec. 12 election is a critical moment for the world’s fifth-largest economy, and that choosing their rival will set Britain on a path to fiscal ruin.

“This election isn’t just about the next 12 months of the Brexit withdrawal agreement, or even about the next five years. It’s about the next 10 years,” said McDonnell.

“It’s about future generations, and the future of our country and, yes, the future of our planet.”

But, set aside the ideological differences and for the first time in over a decade the Conservatives and Labour are fighting an election campaign with a similar promise: borrow, spend big, and pour billions into building roads, schools and hospitals.

Javid, a 49-year-old former Deutsche Bank financier, would rewrite the country’s fiscal rules so he can spend an extra £20 billion per year, raising borrowing for infrastructure to 3% of economic output from its current 1.8%.

That willingness to spend reflects Prime Minister Boris Johnson’s need to broaden his appeal with the electorate and reach those voters who typically vote Labour.

McDonnell, 68, is a lifelong campaigner who is promising to borrow and spend even more - £400 billion over 10 years. He says the fiscal rule should be that interest payments on government borrowing should not exceed 10% of tax revenues.

Their rules are different, but the direction of travel is the same, even if neither candidate wants to admit it.

“The difference between our approach and Labour’s approach is like night and day, there is a huge gulf in difference in our economic approach,” said Javid.

McDonnell said he wanted an “an irreversible shift in the balance of power and wealth in favour of working people”.


RACE TO SPEND

The race to borrow and spend is a far cry from three previous election campaigns this decade, where the Conservatives played heavily on a reputation for fiscal prudence against a backdrop of economic uncertainty, forcing Labour to downplay its inherent willingness to loosen the purse strings.

The early pledges prompted one non-partisan think-tank, the Resolution Foundation, to declare that whoever wins, Britain appeared to be heading back to levels of state spending not seen since the 1970s, before Thatcher’s small-state revolution.

“Both parties’ plans would represent a sharp change in policy, and Labour’s plans are especially ambitious,” said Ben Zaranko, Research Economist at the Institute for Fiscal Studies think-tank.

The shift in the 2019 campaign reflects low borrowing costs, a budget deficit at its lowest share of GDP since the early 2000s, relatively stable economic fundamentals - setting aside the potential disruption of Brexit - and above all, voters’ unwillingness to endure further spending cuts after nine years of austerity by Conservative-led governments.

There has also been a global shift, backed by the IMF, for higher spending.

While Brexit is expected to overshadow the state of the economy in the election debate, campaigning on basics like roads, railways, schools and hospitals is inevitable, and success depends on winning the economic argument.

On Thursday the new backdrop for those debates was set: borrowing and spending is set to rise, the question the voters will have to decide is by how much?

Newsletter

Related Articles

0:00
0:00
Close
Trump Declines UK Offer to Deploy Aircraft Carriers to Middle East Amid Iran Conflict
Prince Harry and Meghan Markle to Return to Australia After Seven Years for Philanthropic and Business Engagements
UK Government Signals Independence From Washington as Cooper Says Britain Does Not Agree With Trump on Every Issue
UK Experts Warn AI Chatbots Are Fueling Surge in Claims of Organised ‘Satanic’ Ritual Abuse
UK Political Parties Divided Over Strategy as Iran Conflict Reshapes Foreign Policy Debate
Britain Discloses Secret Military Repair Hubs Operating Inside Ukraine
Trump Says US No Longer Needs UK Carrier Support After Delayed Offer Amid Iran Conflict
Why Britain Has Become Involved in the US-Israel Military Campaign Against Iran
UK Gas Storage Falls to Under Two Days as Iran Conflict Jolts Global Energy Markets
UK Warned to Brace for Economic Shock as Iran War Drives Global Energy Price Surge
Starmer and Trump Hold First Call After Public Dispute Over Iran Conflict
UK Dentists Returned £1.3 Billion to Government as Shift Toward Private Care Accelerates
Expert Warns UK Must Build Emergency Food Stockpiles to Prepare for Climate Shocks or War
UK Plans Charter Flight to Evacuate British Nationals from Gulf as Regional Conflict Disrupts Air Travel
Families of Zimbabwe’s Liberation Fighters Call on Britain to Help Locate Skulls Taken During Colonial War
Iran’s Ambassador Warns Britain to ‘Be Very Careful’ Over Deeper Role in Expanding Middle East War
UK Military Leadership Defends Britain’s Defensive Role in Expanding Middle East Conflict
Four U.S. Strategic Bombers Arrive in Britain as Iran War Intensifies
Soham Murderer Ian Huntley Dies After Violent Attack in High-Security Prison
UK Lawmakers and Experts Condemn Scale of Overseas Human Remains Held in British Museums
Royal Navy Aircraft Carrier HMS Prince of Wales Placed on Standby for Potential Deployment
United Kingdom Confirms U.S. Military Using British Bases for Operations Targeting Iranian Missile Sites
Starmer Defends UK Role in Iran Conflict After Renewed Criticism from President Trump
Blue Owl Reveals £36 Million Exposure After Collapse of UK Lender Serving Wealthy Clients
UK Asylum Reform Plan Triggers Fierce Debate Over Border Control and Humanitarian Impact
US Stealth Bombers Head to UK Base as Trump Issues Stark Warning to Iran
UK Deputy Prime Minister Says Legal Case Could Exist for British Strikes on Iranian Missile Sites
Investigators Link Mysterious Parcel Fires Across Europe to Russian Intelligence Operation
Debate Intensifies Over Britain’s Legal Justification for US Military Operations Launched From UK Bases
Britain Faces Heightened Energy Price Risks as Iran-Linked Tensions Threaten Global Oil and Gas Supplies
British Counter-Terror Police Arrest Four Suspected of Spying on Jewish Community for Iran
Axel Springer Agrees $770 Million Deal to Acquire Britain’s Daily Telegraph
Iceland Supermarket Drops Trademark Challenge Against Icelandic Government in Long-Running Naming Dispute
UK Defence Secretary Visits Cyprus Following Scrutiny of Britain’s Response to Drone Attacks
Questions Grow Over Britain’s Military Readiness as Response to Iran Conflict Draws Scrutiny
UK Offers Failed Asylum Seeker Families Up to Forty Thousand Pounds to Leave Voluntarily
Saharan Dust Could Bring ‘Blood Rain’ to Parts of the UK as Weather Systems Shift
UK Deploys Additional Typhoon Fighter Jets to Qatar and Helicopters to Cyprus Amid Rising Middle East Tensions
Experts Urge Britain to Accelerate Renewable Energy Push as Global Conflicts Drive Up Costs
British Public Shows Strong Reluctance to Join Wider War in Iran
First UK Evacuation Flight Departs Middle East After Lengthy Delay
United Kingdom Imposes New Visa Requirements on Travelers from St. Lucia and Nicaragua
Iran Conflict Strains U.S.–U.K. Alliance as Trump and Starmer Clash Over Military Strategy
UK Interest Rates Could Rise Above Four Percent Again if Energy Shock Continues, Think Tank Warns
Starmer Defends Britain’s Iran Strategy as Badenoch Urges Stronger Military Support
Labour MP Says She Saw No Sign Husband Broke Law After Arrest in China Espionage Investigation
UK Jobless Rate Overtakes Italy’s for First Time in Years as Labour Market Weakens
United Kingdom Suspends Student Visas for Four Countries in Unprecedented Immigration Move
Campaigners Warn UK Student Visa Ban Could Push Migrants Toward Dangerous Channel Crossings
First U.K. Charter Flight for Stranded Nationals Set to Depart Oman Amid Middle East Crisis
×