Rachel Reeves is said to be considering a technical change to the measure of debt used in the fiscal rules in order to allow more government borrowing. This move may not be as outrageous as some suggest, but it would not be costless either. And there is certainly no silver bullet to fix the public … Continue reading Labour’s fiscal credibility is at risk if the Chancellor keeps shifting the goalposts
Tag: GDP
Labour’s policies risk snuffing out the recovery
Let us start with the good news. The UK economy is set to beat expectations this year and outperform the euro area, boosting the appeal of UK assets to overseas investors. UK GDP grew by a solid 0.7 percent in the first quarter, and this rate is likely to be matched in the second. Even … Continue reading Labour’s policies risk snuffing out the recovery
Bank of England rate cut should be the first of many
The Bank of England’s decision to cut UK interest rates to 5% this week was finely balanced but surely correct. The aim now should be to return rates to a 'neutral' level of around 4% early next year. The obvious starting point is that CPI inflation has now been at or very close to the … Continue reading Bank of England rate cut should be the first of many
Broken Britain: can a Labour government fix it?
Keir Starmer’s suited and rebooted Labour Party looks set to sweep to power and says it is ready for business. But Labour will also inherit an economy suffering from a chronic lack of growth, a housing crisis, and failing public services. Nothing seems to be working properly and productivity has stagnated. Can Labour get the … Continue reading Broken Britain: can a Labour government fix it?
Plain-speaking Economics 