Schools economics class: Keir Starmer faces £4.25bn fiscal hit after benefits reversals

This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.

Specification: 

• Fiscal policy

Click to read the article below and then answer the questions:

Keir Starmer faces £4.25bn fiscal hit after benefits reversals

• Identify the policy reversals that have cost Sir Keir Starmer’s government £4.25bn

• State Chancellor Rachel Reeves’ key fiscal rule

• With reference to the chart The UK’s borrowing costs remain elevated, assess the impact of recent policy U-turns on the UK’s borrowing costs

• Using a withdrawals and injections diagram, analyse the effects of raising taxes on the UK economy. (Refer to the multiplier effect in your answer.)

Gavin Clarke, Emmanuel College