Political And Economic Factors Shaped The Labour Government 's Decision On Funding And Delivering Social Security Welfare Service
This report will discuss how ideological and economic factors shaped the Labour government 's decision in funding and delivering social security welfare service. The report is divided into 4 sections, Section 1, a brief mention of the state of the British economy and will make reference to the New Labour third way ideology, Section 2, will discuss the Labour government`s thinking and policy on social security, section 3, changes made to existing cash benefits and why, section 4, conclusion.
Reports by the Office of National Statistics, has is that the British economy experienced what is known as cost push inflation. A couple of identified factors pushed the Inflation in the United Kingdom to over 20%, factors like rising oil prices and wage push inflation. In tackling the inflationary trend the conservative led government decided to operate a tight fiscal policy. (ONS, 2013) 1) increased interest rates
2) Reduced Budget deficit through higher taxes and spending cuts
3) Pursue monetarist policy of trying to control the…