DailyMail: Labour’s meltdown over cutting benefits: Starmer faces outcry from party’s left over plan to ‘trap people in poverty’

Unable to raise debts or taxes, the UK Government needs to cut expenses to be able to finance the budget and extra expenses. Even more, today there is a need to cut expenses in view of increasing military expenses. Ukraine has taken additional billions from the budget and the UK has committed to pay many further billions to Ukraine. The war rhetoric is accompanied by much higher military budgets. The same problems are facing other European governments which need additional funds for Ukraine. The EU countries have agreed on an EU debt mechanism, Germany will change its Constitution to raise mega-debts. The European debt bonanza has already raised interest rates, and in the case of the UK this is felt as the UK debt financing gets more expensive as a result.
The Starmer Government will cut benefits, basically from its own voters: the poor people in the UK. Economists know that today tax raises are impossible and will only disturb or destruct economic activity or investments. There are hardly UK taxable segments left that will provide some extra taxes without reducing other income. PM Starmer, in his latest speech, made Russia responsible for high energy prices and raising costs of living, all together, Russia is responsible for the UK’s economic troubles. In someway this seems a correct statement, as Russians have transferred in the last 20 years before the Ukraine conflict ca. GBP 100 billions to the UK per year. These transfers and investments are missing in the UK. Sanctions on Russian energy have, of course, increased energy prices. As well, the latest tax change for foreign residents, NonDoms, has made many wealthy foreigners leave the country, a development of economic downturn to follow. As a result and as always, political measure and decisions are reason for a problematic economy. The poor never want war.