Is Labour's inheritance really worse than expected?

On Monday, the new Chancellor, Rachel Reeves, stood up in front of Parliament and spoke about, what was in her view, the challenging economic inheritance left to Labour by the previous Conservative government. She revealed a series of unfunded commitments by the previous government - a multibillion-pound in the public finances covering areas such as spending on asylum seekers and unfunded infrastructure projects. So, what do we make of the announcements? What are the implications of the spending cuts announced? What does this statement tell us about how the Chancellor will handle economic challenges? To answer these questions, we’re joined by Christine Farquharson and Ben Zaranko. Become a member: https://ifs.org.uk/individual-membership Find out more: https://ifs.org.uk/podcasts-explainer... 00:00 Introduction: The Government's Economic Challenge 01:20 Labour’s £22 Billion “Black Hole” Explained 03:00 Immediate Pressures 06:00 Public Sector Pay and Spending 10:52 Impact of Inflation 13:00 The Treasury Reserve 16:00 Asylum Seeker Budget Costs 20:00 Scrapping the Advanced British Standard 24:00 Pensioner Spending 28:00 Social Care Reforms 33:50 Conclusion: Tough Choices Ahead for Labour