The Labour Party has been quick to criticise Liz’s “unfunded” tax cuts, while jumping at the opportunity to announce unfunded spending of their own. Using the justification of reversing Kwasi’s cut to the top rate of income tax, Labour has announced a swathe of expansionary policies, supposedly without breaking their own fiscal rules. The claim is that the £2 billion in “savings” doesn’t count as borrowing. They seem to think their reallocating of borrowed money is different to Kwasi’s borrowing…

Among Labour’s flagship pledges is the provision of breakfast clubs for all primary school children. Labour’s press release fails to mention that the government already provides breakfast clubs for those who need them most. The effect of the policy is making the spending less focused, not exactly ideal in an inflationary period…

The £2 billion in reassigned borrowing is being spent as follows:

• NHS modernisation plan – £1.6 billion
• Expanding school breakfast clubs – £186 million

Looking through Labour’s other spending commitments, partly justified by their fiscal rules which conveniently don’t count borrowing “to invest” as borrowing, the costs quickly add up:

• 0.7% GDP on International aid – £4 billion
• National Wealth Fund – £8 billion, from £28 billion previously announced
• Growth plan tax cuts, minus changes to corporation tax and top rate – £24 billion
• Accepting the government’s energy price cap – £85 billion

The party claims they would raise more revenue through a windfall tax and by reversing Kwasi’s corporation tax rise. Though by Labour’s own figures the windfall tax would raise just £8 billion, and the £19 billion corporation tax “savings” are again being made from existing borrowing. Doesn’t quite cover it…

Starmer’s policy promises are fully costed… only if you ignore the billions they’ve excluded from the costings.