The Treasury’s “fiscal rules” are rather like New Year’s resolutions: many of us make them, but few keep them. Nonetheless, after the spending binge during the pandemic, the Government needs some sort of framework to bring borrowing back under control. We may not have to wait much longer. The Chancellor is expected to unveil new … Continue reading Sunak must keep trying to cut tax before the next election
The Treasury is keeping busy, but hopefully not too busy. On the same day as the Prime Minister unveiled the ‘health and social care levy’, the Chancellor revealed last week that we will only have to wait another 50 days for the Autumn Budget, due on October 27. The focus next month will probably be on … Continue reading Stronger economy should save us from further tax rises
Consumers, businesses, and investors are increasingly optimistic about the prospects for the UK economy, and independent forecasts are continually being revised up. Policymakers at the Treasury and Bank of England should now be reassessing their plans too. The consensus at the start of the year was that UK GDP would grow by around 4% in … Continue reading It’s time to pause QE
In 2010, Liam Byrne left a note to his successor as Chief Secretary to the Treasury which famously read “I’m afraid there is no money”. After all, annual borrowing had just peaked at a record £158 billion, and the stock of debt was about to top £1,000 billion for the first time. Roll forward a little over a … Continue reading Is there any money left?