An expert explains why the next budget could be tough for many

Politics expert Dr Steve McCabe with analysis on the tough economic decisions faced by the new Labour government.

Transcript

00:00Well, Labour came in promising there was going to be a change for the better and they were

00:06going to give us honesty and undoubtedly of course there are financial problems which

00:10are actually baked in. The Office of Budget Responsibility which looks at the figures

00:15that even if the previous government had won, we're fully aware that they were going to

00:19have to make fairly stringent cuts in terms of trying to balance the budget and not get

00:24into what I call a Liz Truss situation where you're spending way beyond your means because

00:28quite clearly the government is worried about the international markets taking fright and

00:34putting interest rates up. And of course as we know there's a lot of international difficulties.

00:39So therefore Labour got in, they've told us that there was a £22 million back hole, now

00:44we're talking about the fact that they need £40 billion and of course they're promising

00:49to improve public services including most especially the health service. So of course

00:54they need all this extra money. So they've kind of forewarned us that things are going

00:57to be very difficult.