The latest surge in gilt yields - which represents the cost of new borrowing by the UK government in the bond market - is yet another shock that the already fragile economy could do without. To be fair, this crisis is not entirely the making of Rachel Reeves and her October Budget. Bond yields have … Continue reading What to make of soaring bond yields
Tag: public debt
Five ways in which the Budget could unravel
Rachel Reeves’ first Budget was not all bad (see my response on the day here). For a start, the new fiscal rules, while still flawed, are an improvement on what went before. Balancing day-to-day spending with current tax revenue makes good economic sense, as does tweaking the targeted measure of debt to take more account … Continue reading Five ways in which the Budget could unravel
First thoughts on the Budget
Above all, this was a Budget for a bigger state. Public spending will be even higher, financed by large increases both in taxation and in government borrowing. In addition, the Budget continues the steady ratcheting up of state intervention and regulation, including another large increase in minimum wages. This is very hard to square with … Continue reading First thoughts on the Budget
Labour’s first 100 days – the economy
In response to overwhelming public demand (not really!) here is my take on the impact that the incoming Labour government has had on the UK economy. Clearly, it’s early days and there is still all to play for, but the initial signs are not encouraging. The obvious place to start is the health of the … Continue reading Labour’s first 100 days – the economy
Plain-speaking Economics 