Money saving expert Martin Lewis has accused the Conservatives and Labour of failing to be clear on public finances, tax and cuts.
Independent analysis by the respected Institute for Fiscal Studies (IFS) has found there is a massive gap between party promises and any sort of explanation on how failing public services will be paid for.
Speaking in an ITV debate between party leaders on ITV Rishi Sunak insisted that Labour’s plans would land working households with a £2,000 bill.
He claimed the figure was backed by independent analysis by Treasury Civil Servants.
However, this was denied this morning by the most senior civil servant in the Treasury who said he has told the Prime Minister the £2,000 tax attack “should not be presented as having been produced by the civil service”.
Based on the most recent Jeremy Hunt budget big cuts in unprotected government spending are pencilled in for the next few years.
In theory, this would mean further reductions to areas such as local councils, courts, further education colleges and prisons.
The IFS argues the only alternative to such cuts would be to increases in taxes, however neither the Conservatives or Labour have come clean on what these could be.
Both parties have ruled out increases in income tax, National Insurance and VAT which leaves voters in the dark about how the gap between spending commitments and income from tax will be resolved.
Martin Lewis pointed out that the “real question” was not being answered.
He said: “Both parties are going to face really tough public finances over the next few years – the real question is ‘how will you manage the black hole in the public finances, what’ll give – more debt, more tax, less spending?”
The personal finance guru, along with much of the rest of the country that had tuned into ITV at 9pm (June 4), was left wanting after the ITV debate saw each leader given just 45 seconds to provide answers to the massive problems facing the UK.
With the cost of living squeezing Brits, the founder of moneysavingexpert.com was scathing at the lack of scrutiny faced over their plans.
He also pointed out that neither leader addressed the crisis facing the nation’s renters.
Commeting on X while the debate was ongoing, he wrote: “We need a question on renting. The situation is dire for renters. The costs are rocketing, their rights are limited, renters need better.”
Significatnly, after Rishi Sunak called the general election, key legislation that would have given more rights to renters was scrapped to make way for the poll. Meanwhile, UK rents have soared by around £103 per property this year.
Keeping a focus on issues that affect a key Labour demographic, younger and university-educated voters, he asked: “I wonder if either party will agree to uprate student maintenance loans in line with inflation?
“The real term cuts the living loans is a real hit to access to those from non-traditional university backgrounds.”
Separately, Martin Lewis appeared to support Starmer’s warning that Rishi Sunak may have jumped the gun with a claim that inflation has effectively been defeated. The Labour leader pointed out that, for example, the energy price cap is likely to go up in October ahead of this winter.
Mr Lewis said: “It is correct to say that energy prices are predicted to rise this year at the moment, though its not set in stone.
“Current prediction is energy price cap to rise 12 percent in October, which will mean paying more than we do right now.”
Martin Lewis also put a caveat on claims from Rishi Sunak about a claimed new Labour tax raid on pensioners, accusing him of “very inaccurate phrasing”.
The Conservatives have pledged to change tax allowance rules to ensure that no-one whose only income comes from the State Pension is charged tax. To date, Labour has not matched this.
