Friends First’s Power sees huge spending demands for a new government

A new government will face huge challenges to mend and invest in tattered public services at a time when public finances are still “constrained”, Friends First economist Jim Power has predicted.

Presenting his annual forecasts, Mr Power said the malfunctioning health service and urban and rural crime are two symptoms of under-investment in public services after the long years of austerity and crisis.

But he said he would not like to see the unexpected bounty from corporate taxes to be spent on public services because such tax revenues are likely to be windfalls.