Tag: interest rates

12 reasons to be more cheerful about the UK economy in 2021

I know 2021 will be another tough year for many people and businesses, but I’m aiming here to provide some counterbalance to the more negative commentary you can easily find elsewhere... 1. The household sector (in aggregate) has built up substantial savings during the pandemic that could be used to fuel a strong recovery in … Continue reading 12 reasons to be more cheerful about the UK economy in 2021

Why we don’t need tax rises to pay for Covid

How deep a hole are we in? The Institute of Economic Affairs has just published a primer I’ve written on the state of the public finances, which digs into this question. On the bright side, I argue that there is no need for any form of austerity, including tax rises, to fill a gap left … Continue reading Why we don’t need tax rises to pay for Covid

How I Learned to Stop Worrying and Love the Debt

I’ve read some utter tosh on the state of the UK public finances in the last few days. Here is an attempt to correct some of the biggest misunderstandings. Most importantly, government debt does not have to be ‘repaid’, only serviced. As long as the government can meet the interest payments (I’ll come back to … Continue reading How I Learned to Stop Worrying and Love the Debt

How much should we worry about UK government debt?

Another month, another set of scary numbers on the public finances: the UK government borrowed an additional £36 billion in September and total public debt rose to £2,060 billion, or around 103.5% of national income (GDP). But there is still no need to panic. For a start, the figures are entirely as expected. If anything, … Continue reading How much should we worry about UK government debt?