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Treasury Analysis Projects £10bn Annual Deficit Under Labour Plans

Rishi Sunak and Keir Starmer clash over the economic impact of Labour's proposed policies, with significant discrepancies in cost estimates.

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Keir Starmer and Rachel Reeves have pledged to spend billions on green energy projects
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Keir Starmer holds a card detailing his policy priorities at the launch of the Labour Party election campaign

Overview

  • Treasury estimates Labour's plans will generate £20.4bn in tax revenue over four years.
  • Spending under Labour's policies could reach £58.9bn over the same period.
  • Key areas of spending include healthcare, education, and green investments.
  • Labour disputes the Treasury's calculations, citing 'glaring mistakes' and 'dodgy assumptions.'
  • The debate highlights stark contrasts in fiscal strategies between the Conservatives and Labour.