Islam Faisal
Economics writer

An increase in spending of £70 billion a year – or 2% of GDP – bringing the size of government closer to European levels.

It is financed half by one of the largest tax hike budgets outside of a recession, and half by a significant increase in borrowing.

National insurance increases to £25 billion a year for employers, offset by a cost of £5 billion for public sector employers. It raises £20 billion a year in total, one of the biggest tax rise measures in history.

The chancellor says this is due to a problem she has only noticed since coming to power. It is therefore also a Budget of blame. The chancellor appeared to be bringing charges against former Treasury ministers for crimes against spending estimates.

She highlights the OBR’s verdict that its forecasts at the last budget would have been “significantly different” if the Conservative-led Treasury had been clearer about its spending.

The new government claims this is a cover-up for the need to increase spending. It will be Labor’s version of Liam Byrne’s. infamous “there is no money” letter.

This budget will “make a clean sweep of the tax fiction” of the previous government, sources suggest to me. The chancellor listed what she said was compelling evidence that the plans would never be carried out.

What does all this mean?

Public services will receive an immediate injection. A line can be drawn under the years of austerity, at least until a longer-term spending review.

The revenue generated by tax increases is intended to reduce health spending in order to cope with record delays, which are now having an impact on the labor market and therefore on growth.