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UK government’s economic inheritance becomes a battle line

With an eye on re-election, the new Labour government will slam its predecessor’s economic record and promote its own agenda

    • UK Prime Minister Keir Starmer (right) and Leader of the Opposition Rishi Sunak at the opening of parliament in July.
    • UK Prime Minister Keir Starmer (right) and Leader of the Opposition Rishi Sunak at the opening of parliament in July. PHOTO: REUTERS
    Published Wed, Jul 31, 2024 · 05:00 AM

    THERE are major political differences between the United Kingdom’s new Labour government elected on Jul 4 – ending 14 years of Conservative rule – and the Conservative-led one which entered office in May 2010, taking over from its Labour predecessor.

    However, one commonality is that both have claimed a sub-par economic inheritance at the point of handover.

    The new Labour Chancellor Rachel Reeves has claimed that she has the worst such inheritance in the post-war era. On Jul 29, she released a Treasury dossier showcasing a “£22 billion (S$38 billion) black hole” in this year’s Budget.

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