Labour and Tories accused of silence over cuts

The Conservative and Labour parties have been criticized by a leading think tank for not addressing potential spending cuts or tax increases.

The Institute for Fiscal Studies warns of difficult decisions ahead, while Chancellor Jeremy Hunt acknowledges the challenge.

Labour also recognizes the need for public spending reductions for their policies. In Wednesday's Budget, Hunt announced a NI decrease, a child benefit threshold raise, a vaping tax, and an end to non-dom status, a policy originally proposed by Labour, leading to criticism from Labour leader Sir Keir Starmer.

Prime Minister Rishi Sunak remains non-committal on the election date, speculated to be later in the year. The IFS warns of significant cuts, especially in unprotected sectors, to lower debt relative to the economy's size.

Chancellor Hunt has planned spending increases only slightly above inflation until 2029, creating pressure on various government departments.

The Office for Budget Responsibility notes a lack of spending plan details, impacting essential services like NHS and education. Labour claims it will redirect funds to finance NHS and school plans.

The Resolution Foundation points out that the Budget favors middle earners, with pensioners predicted to lose the most. It also highlights a prolonged stagnation in wage growth, with average earnings not recovering to pre-2008 levels until 2026.