The jump in inflation in October was not a big surprise after the 10% increase in household fuel bills, but the cost-of-living crisis will worsen before it gets better. Most commentators expect the measures in last month’s Budget to add to inflation next year, as businesses pass on the costs of the large increases in … Continue reading More pain to come as Budget measures bite
Tag: Rachel Reeves
The Budget has just made the Bank’s job even harder
It is good to start for once with some praise for the Bank of England. After the Halloween Budget in the UK and the fireworks of election night in the US, the Bank’s Monetary Policy Committee helped to calm the nerves by delivering the expected quarter point cut in interest rates (to 4.75pc) on Thursday. … Continue reading The Budget has just made the Bank’s job even harder
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
Plain-speaking Economics 