Cause and effect – the Marxist UK labour government’s policies – and the impact on unemployment, inflation and growth – LABOUR ISN’T WORKING!!
Just two years in office with up to 3 years of MORE intentional economic harm to go
British readers will recall this advert for the Tories from 1978:
Labour Isn’t Working - Wikipedia
“Labour Isn’t Working“ was an advertising campaign in the United Kingdom. It was run by the Conservative Party in 1978 in anticipation that Labour Party Prime Minister James Callaghan would call a general election. It was revived for the general election campaign the next year, after the government lost a vote of no confidence in the wake of the Winter of Discontent. It was designed by advertising agency Saatchi & Saatchi.[1]
History may not repeat, but it does rhyme.
Let’s review he last few years of this Marxist Labour government since it was elected in July 2024. Information from Brave AI.
First taxation:
Since coming to power in July 2024, the Labour government has implemented tax rises totaling approximately £60.3 billion through its two budgets, with an average of a tax rise occurring every ten days.
2024 Budget (October 30, 2024)
The first budget, Chancellor Rachel Reeves’ first since 2010, announced £40 billion in tax rises, the largest increase since 1993. Key measures included:
Employer National Insurance: Increased from 13.8% to 15%, expected to raise £25.7 billion by 2029-30.
Capital Gains Tax: Main rates increased to 18% and 24%, raising £2.49 billion.
Other Measures: Including VAT on private school fees, increased windfall taxes on oil and gas, and changes to inheritance tax and stamp duty.
2025 Budget (November 26, 2025)
The second budget introduced 24 new taxes or rises, adding an additional £23.4 billion to the total tax burden (bringing the cumulative total to £60.3 billion by the end of the decade). The most significant revenue raiser was:
Income Tax Threshold Freeze: Extending the freeze on personal tax thresholds for three years, expected to raise £7.8 billion by 2029-30.
Salary Sacrifice Cap: Capping salary sacrifice schemes at £2,000, raising £4.85 billion.
Capital Allowances: Reducing writing down allowances, raising £1.47 billion.
According to the TaxPayers’ Alliance, a total of 52 new taxes or tax rises were implemented across these two budgets during the first 509 days of Labour’s office.
International Monetary Fund (IMF) forecasts indicate that the UK is raising taxes at the fastest pace among major global economies, with the tax burden projected to surge from 37.6% of GDP in 2024 to a peacetime high of 42.1% by 2030.
This rise, equivalent to an additional £130 billion annually or roughly £4,500 per household, is driven by measures such as a £25 billion increase in employers’ National Insurance contributions and fiscal drag from frozen tax thresholds.
The UK’s tax burden is expected to climb by 4.5 percentage points between 2024 and 2031, a rate five times faster than the average across 38 advanced economies and outpacing all other G7 nations.
For comparison, France is forecast to see a 1.7-point rise, Germany 1.2 points, and the US only 0.9 points. The IMF also warned that Britain’s gross public debt could reach 104.1% of GDP by 2030, while the Labour government defends the hikes as necessary to fund public services and manage structural fiscal pressures.
And the impact on the economy in just the last two years.
y has experienced a period of slowing growth, rising unemployment, and sticky but moderating inflation.
Inflation: Consumer Price Index (CPI) inflation has remained above the Bank of England’s 2% target, fluctuating between 3.0% and 3.4% in late 2025 and early 2026. After falling to 3.2% in November 2025, it rose to 3.4% in December 2025 due to timing factors like tobacco duty changes, before settling at 3.0% in January 2026. Forecasts expect inflation to fall toward 2.2–2.3% by late 2026, though geopolitical conflicts have introduced upward pressure.
Unemployment: The unemployment rate has risen significantly, climbing from 3.8% in February 2024 to 4.7% by July 2025, and reaching 5.1–5.2% by the end of 2025 and early 2026. This marks the highest rate since the early pandemic, driven by a weakening labor market in sectors like hospitality and retail.
Growth: Real GDP growth has decelerated, with estimates for 2025 at 1.4% and 2026 projected to slow further to 1.1–1.3%. Growth has been disproportionately driven by the public sector and net trade, while private domestic demand has weakened. Productivity growth remains low, with real wage growth stagnating at below 1% in late 2025.
A quick note on the impact of ‘net zero’ policies over th last 5 years.
Net zero policies have added approximately £17 billion in annual environmental levies and support schemes to UK energy bills in the 2023-24 period, a figure projected to rise to over £20 billion per year by 2029-30.
These costs, which include subsidies for renewables, heat-related incentives, and grid balancing, now constitute a significant portion of household bills, with estimates suggesting they contribute to an increase of £250 to £400 annually for typical households depending on interest rates and specific policy mixes.
While wholesale gas prices were the primary driver of the acute energy crisis between 2021 and 2023, the structural costs of the energy transition have created a sustained uplift in retail prices. Critics argue that had the UK maintained pre-2006 retail margins without these transition-related levies, households would have saved an estimated £130 billion (in 2006 money, in today’s money) since 2006.
‘roughly £218 billion ‘ is around 7 per cent of UK GDP.
Labour planned to build 300,000 new homes for immigrants – legal and illegal- every year over 2024-2029.
In 2024, approximately 221,500 new homes were completed in the UK (based on EPC data for the twelve months to September 2024). In 2025, new home registrations rose by 11% to 115,350, while completions stood at 122,012 for the full year, a 2% decrease from 2024.
Hose figures do not make sense and are way below the 300,000 annual target.
How does 122,012 for the full year of 2025 and a 2% decrease from 2024 reconcile with -in 2024, approximately 221,500 new homes were completed in the UK. looks like a 45 per ce DECLINE. In housing completions between 2025 and 2024.
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