In launching his party's manifesto, he set out a string of promises which aim to transform service delivery in areas like health, education, and transport. But Labour's record on public spending in the last four years is unimpressive - and an influential think tank has suggested that tax increases could be needed if a new government is to keep to its ambitious plans for more cash for health and education. But Labour has refuted the claims, arguing that their plans for later years call for more modest spending increases. Gordon Brown said that no chancellor would want to commit his party to firm spending plans so far in advance, but that any future Labour proposals would be prudent and affordable. Labour also argues that cuts in debt interest and social security payments allow it to target spending on health and education without having to raise the overall spending total.
Labour is vulnerable to Conservative jibes over the increasing tax burden over the last four years.
And it has also been stung by accusations that it is not producing the goods on public spending. Despite the 72bn of extra cash for essential services promised in last summer's spending review, public spending as a share of the total economy is actually lower now than under the Conservatives. And even after it implements its future spending plans, total government spending would be lower than in 14 of the last 18 years of Conservative government. The Liberal Democrats have pounced on this, lambasting the government for betraying its election promises to mend Britain's crumbling infrastructure. This is lower than the growth seen under the Conservatives during their 18 years in office and considerably lower than the increases in taxation which have taken place.