UK is ‘broke and broken,’ new government says as it prepares to tackle shortfall in public finances.
Britain’s government has declared the country “broke and broken” ahead of an evaluation of public finances on Monday, which the newly-elected Labour Party will use to blame a 20 billion pound ($26 billion) shortfall to their predecessors.
The critique comes a day before Treasury chief Rachel Reeves is expected to outline a 20-billion-pound ($26 billion) shortfall in public finances during a speech to the House of Commons.
It argued that the military had been “hollowed out’’ at a time of increasing global threats. The National Health Service was “broken,’’ with some 7.6 million people waiting for care.
And despite billions spent to house migrants and combat the criminal gangs ferrying migrants across the English Channel on dangerous inflatable boats, the number of people making the crossing is still rising, Starmer’s office said. Some 15,832 people have crossed the Channel on small boats already this year, 9% more than during the same period in 2023.
The assessment will show that Britain is broke and broken — revealing the mess that populist politics has made of the economy and public services.
Any tax changes will be announced in the budget this autumn. Finance Minister will confirm the date of the autumn fiscal event on Monday.
Currently, the top rate of capital gains tax is 28 per cent, while the top rate of income tax is 45 per cent.
Labour ruled out raising Income Tax, VAT and national insurance during the general election but it did not take changes to capital gains off the table
