For 5 months, the Labour party has endured harsh criticism and intense scrutiny.
They have allegedly increased taxes for the working-class population; ‘breaking promises’ made in their manifesto.
But how do these controversial new policies on finance impact us?
On the 30th October, Rachel Reeves announced an increase of £40 billion in tax rises to close the hole in public finances.
This rise was created by new, increased taxes, and the abolishment of certain areas in the benefits system.
National Insurance contribution (NI) is a tax paid by employers according to a specific salary, and is set to raise from 13.8% to 15% in April 2025.
While the employees themselves do not pay any higher tax, employers and businesses now have to bear a higher burden.
This increase in the cost of labour among the workforce may cause halts in new employment, the loss of jobs, and overall higher costs for products, in an attempt to cope with the new rate of National Insurance.
National Minimum wage is also increasing in April of 2025, by £1.15 for 16–17 year-olds, £1.40 for 18-20 year-olds, and £0.77 for those aged 21 and over.
This change benefits workers but creates the same potential problems in terms of employment and the cost of living as the National Insurance increase.
The Labour Party have also been focused on rectifying the UK benefit system.
Total benefits will rise by 1.7% in April next year, however, the winter fuel allowance for pensioners was cut.
10 million pensioners will not receive financial aid to heat their homes. The Scottish Government announced they would commence a new heating payment for all Scottish pensioners next year.
As the current Labour Government adopt a strong, pragmatist approach to reach their goal of accelerating economic growth, they face continuous disapprovals along the way.
The ongoing petition to call another general election has nearly reached 3 million signatures in only 10 days.
Although the Labour party’s policies have sparked significant amounts of distrust amongst the country, their new approach towards economic growth may be the change that elevates the UK’s standard of living.