Quick Guide: Tax and spending
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Budget gap

Tax rises

Spending cuts

Cutting waste

Council tax


The UK economy has enjoyed steady growth since the mid 1990s without a recession despite global slowdowns.

This has led to low unemployment and rising living standards.

Inflation, targeted by an independent Bank of England, has remained low and interest rates fell sharply.

This has helped fuel a house price boom, and interest rates have begun to rise again.

Labour claims its tough budget discipline has helped end the "boom-bust" cycle.