The tax and spending choices facing Andy Burnham

Andy Burnham is preparing to enter Downing Street, but he will inherit a government facing tight fiscal constraints and a series of difficult decisions. The public finances remain under pressure, debt interest spending is high, and commitments not to raise the main rates of income tax, National Insurance or VAT limit some of the most obvious ways of raising revenue. At the same time, the new Prime Minister will need to make choices about departmental spending, defence, welfare, social care and the cost of living. How much flexibility will Burnham have over taxes, borrowing and public spending? Which commitments could be maintained, and which might need to be scaled back? And will a change of Prime Minister create space for a different economic strategy - or reveal the same underlying constraints? Christine Farquharson is joined by IFS colleagues Max Warner and Tom Waters to examine the economic choices facing the incoming Prime Minister. Become a member: https://ifs.org.uk/individual-membership Find out more: https://ifs.org.uk/podcasts-explainer... 00:00 - Introduction 2:40 - How are the public finances doing? 7:15 - The long-term outlook for the public finances 9:20 - Options for raising taxes 14:24 - Options for public spending 21:30 - Defence spending 26:40 - The cost of living 32:20 - The Timms Review 39:00 - The Milburn Review 43:25 - Social care reform 46:11 - Conclusion