Labour government to spend £6.43 trillion by 2029

Keir Starmer’s Labour government is projected to spend £6.43 trillion by 2029, according to new research. This amount ranks him as the second highest spending Prime Minister in the UK since World War II. Four out of ten of the largest spending years will occur during his term. The TaxPayers’ Alliance conducted the analysis and noted that the government is expected to spend an average of 45% of the country’s GDP each year. This figure is slightly lower than that of Boris Johnson, who recorded 45.4% GDP, largely due to pandemic-related spending during his time in office. The report highlights that, by the end of the parliament, real public spending will be more than double what it was at the beginning of the millennium. Spending per household is also expected to increase, reaching £45,184 in 2029-30, up from £43,670 in 2024-25. John O’Connell, chief executive of the TaxPayers' Alliance, commented on the situation, warning that any discussions of spending cuts in the upcoming spring statement should not mislead the public. He remarked that even any small reductions will not address the larger issue of ongoing expenditure. Maxwell Marlow, from the Adam Smith Institute, expressed concern about the rising national debt. He described the current spending trend as unsustainable and signaled that government spending habits are increasingly reliant on taxpayer money. He urged the government to make significant reforms to reduce wasteful spending, especially in public services and welfare, to attract wealth creators to the UK.