Laureen Shepherd’s Post

As the UK approaches a general election, it is crucial for households to be aware of how the proposed policies from major political parties could affect their financial health. In our latest analysis, we explore the economic consequences of the manifesto pledges from the Labour Party, the Conservative Party, the Green Party, and the Reform UK Party.

🌍 In Europe, new governments are facing an immense challenge as they grapple with soaring public debt and constrained fiscal options. A recent article highlights the complexities ahead for countries like France and the UK, where new leaders are elected on promises of change amidst economic stagnation and rising borrowing costs. 📉 Public debt in France and the UK has surged to multidecade highs, reaching alarming levels of GDP. Despite these fiscal pressures, there's a disconnect between political promises for increased spending and the harsh reality of necessary fiscal restraint. Economists caution that tough decisions—such as spending cuts or tax hikes—are inevitable, yet politicians have not adequately prepared their constituencies for these measures. 📈 France's new parliamentary landscape, including a potential hung parliament, adds further uncertainty to its economic outlook. Meanwhile, in the UK, despite historic electoral wins, the Labour Party faces accusations of avoiding critical fiscal choices, raising concerns about sustainable economic management in the post-pandemic era. #Europe #EconomicPolicy #PublicDebt #FiscalResponsibility #GovernmentEconomics

ELECTION SMOKE AND MIRRORS: THE VITAL ISSUES BEING OVERLOOKED A general election is a key part of democracy. It lets people choose leaders they trust and get rid of those who’ve lost their confidence without any chaos. Right now, the British general election isn't hitting the mark. It should be sparking important discussions about big challenges the UK faces, like boosting economic growth, dealing with an ageing population, increasing investment, funding the green transition, enhancing defence spending, and creating a fairer tax system. These are big issues that need real solutions, not just the same old approach. But none of the major political parties are really addressing these concerns. The IMF points out two major problems: a big drop in labour productivity growth and improbable fiscal forecasts. To stabilise debt, we’ll need higher taxes and spending cuts—there's no way around it. The Labour party is likely to win and will need to tackle these issues head-on. Their manifesto talks about stability and planning reforms, which is good, but like other parties, it lacks concrete plans for delivering public services and fixing fiscal problems. The IMF criticises Labour’s vague spending promises and minimal tax increases. While vague promises might win votes, they don't prepare the public for the tough actions needed. If politicians keep dodging the truth, public distrust will only grow, hurting our democracy. Voters deserve honesty about the difficult times ahead, but they’re not getting it. #programexecution #planning #estimating #honesty #election

The federal government talks about generational fairness in the budget unrevealed yesterday. That is ironic for a government that has more than doubled the national debt since being elected and has no plan to balance its budget anytime soon. This puts the burden on future generations to pay the growing debt. A debt where the interest costs already exceed the amount being spend on health-care. That is like a fire fighter putting out a fire he started and taking credit for his work. It is fiscal mismanagement at an unprecedented level. It is also cycnical and an obvious effort to get re-elected on the backs of our grandchildren and their children. #FiscalMismanagement #debt #FutureGenerations

Facing the daunting task of finding an extra £16 billion to fulfil the UK government’s promises, Chancellor Rachel Reeves must balance tight restrictions on borrowing, spending, and debt. The Institute for Fiscal Studies (IFS) warns that without tough decisions, public services could face cuts. With higher post-pandemic debt, inflation, and an ageing population, Reeves may need to look towards higher earners to shoulder more of the tax burden. This Budget could shape the UK’s economic future—stay tuned for the impact! 🚀📊 #UKBudget #EconomicPolicy #Leadership #TaxPolicy #FiscalChallenges

John Ivison: The federal budget is a Liberal strategy driven by panic It's a glossy re-election brochure to convince voters they need to keep Trudeau to enjoy his continued generosity "It would be irresponsible and unfair to pass on more debt to the next generations" - after eight consecutive unbalanced budgets and a doubling of the national debt." It's not panic and it's not incompetence. It is the plan. https://lnkd.in/gftcyH-z

Good morning and welcome to the Hoodies News and Views! What chance do the Libs have in Victoria really? I mean they’re bereft of leadership, can’t agree with one another and really haven’t shown how they can be any form of alternative to Labor, but now they’re also up against a $70 plus billion war chest the Allan Labor government have stashed away for a rainy day, or an election campaign! Yes folks Jacinta and her mates will be handing out money to struggling Victorians like it’s going out of style in the lead up to the next election as sweeteners for votes! It’s really quite clever when you think about it and hey given the ever increasing secrecy around money and where it does and doesn’t go in Victoria what’s a few billion dollars when the state is already broke? The incredibly hard thing to swallow in this though is that unless the Libs really start showing how and why they could be a viable alternative to Labor they’ll get done again. There is absolutely no doubt the state has had enough of Labor, people are done with all the spin, the lies and the corruption but while people want change they’re not prepared to look at the Libs as the alternative. The reality is that it will be closer than before but they’ll be a move towards independents who will ultimately side with Labor thus giving Allan her mandate for more infrastructure and disaster. Believe it or not democracy still matters and it relies on good governance and good opposition. In Victoria we have a warped and damaged system that is potentially the ruin of the place because until the opposition sorts their lives out the $70 billion war chest is going to be able to fend off anything the Libs can currently muster.

Austerity is a political choice, not an economic necessity. Labour must not follow Conservative policy. By replicating the progressive income tax changes we've already made here in Scotland, the UK could raise over £11 billion a year to fund essential public services. A wealth tax on the richest 1% of households would raise over £70 billion a year. Far from cuts, we could invest and rebuild rebuild after 14 years of Tory neglect. 🔎 https://lnkd.in/gY6kzbAF

In recent years, four types of costs have suddenly emerged for Western governments: aging populations, geopolitics, infrastructure and interest payments. Critics argue that because of this, government spending is on an unsustainable path and some countries are headed for a fiscal crisis, including the US. The key question is whether there will be a bond market crisis, as threatened in the UK in 2022 and occurred in Greece in 2010, or whether governments will take action by reforming public finances before being forced to do so by the bond market. All of this shows that Western governments that take the initiative to reform their public finances before a crisis forces them to do so, are on the right track. #GovernmentSpending #PublicFinances #FiscalCrisis