Dr Neil Shastri-Hurst, Member of Parliament for Solihull West & Shirley, has issued a stark warning today following the publication of Labour’s Spending Review, which reveals an alarming acceleration in public expenditure, unsustainable borrowing, and the certainty of further tax rises under the current Government.
Spending is now spiralling under Labour, with the size of the state on course to reach levels not seen outside the pandemic. Public spending is forecast to hit 45% of GDP next year, and national debt is projected to exceed 96% of GDP. Despite this, Labour continues to push forward with billions in unfunded commitments – without a clear strategy to pay for them.
Some of the most concerning examples of recent fiscal short-sightedness by the Government include a £1.25 billion unfunded U-turn on Winter Fuel Payments; a £30 billion strategic misstep in the handover of the Chagos Islands, celebrated by regimes that do not share our values; £9 billion in public sector pay deals that risk prioritising short-term appeasement over long-term reform; and significant spending on Net Zero initiatives that leave us overly reliant on supply chains dominated by China.
Dr Shastri-Hurst said:
“What we are now witnessing is an abandonment of sound economic stewardship. The country is being saddled with uncosted pledges that will inevitably fall on the shoulders of hardworking families through higher taxes and weakened public finances. There can be no doubt that this trajectory is unsustainable,”
Dr Shastri-Hurst continued
“Whilst investment in public services is vital, it must be underpinned by fiscal responsibility. Without it, we risk undermining the very foundations of our economy.”
Despite recent claims of recovery, the underlying economic indicators tell a more sobering story. Inflation has increased from 2.0% on the day of the 2024 General Election to 3.5%, unemployment has risen by 10%, and GDP growth has slowed markedly – from 1.4% to just 0.8% over the past six months. At the same time, borrowing costs are climbing, with long-term gilt yields increasing significantly, while the cost of servicing the national debt continues to rise, placing growing pressure on the funding of vital public services.
Dr Shastri-Hurst, a British Army veteran, also expressed his concerns as Labour failed to commit to increasing Defence spending to 3% GDP before the end of this parliament.
“Vague ambitions will not keep our country safe. In an increasingly dangerous world, the first duty of any government is to protect its people. That means treating defence as our foremost priority – and committing to spend 3% of GDP to back it up.”
Labour’s reassurances that their plans would not require further borrowing or tax rises now ring hollow. With spending promises far outstripping revenue, the public are being left to foot the bill – a reality that could become painfully clear in the next Budget.
“As the Member of Parliament for Solihull West & Shirley, I am committed to holding this Government to account,”
Dr Shastri-Hurst concluded.
“We cannot afford to allow Britain’s economic resilience to be compromised by short-term thinking and uncosted ambition by Labour. The British people deserve honesty, stability, and sound financial leadership.”
