Reeves promises ‘guardrails’ around extra borrowing in budget October 5, 2024 Chancellor Rachel Reeves has said she will introduce “guardrails” to ensure that extra borrowing for investment in her first budget is not excessive as she seeks to reassure investors about an expected rise in public debt. “It’s about making prudent, sensible investments in the long term and we need guardrails around that”, Reeves told the [...]
National debt: Government must reform or things will ‘blow up’ September 12, 2024 Sooner or later the British government is going to face a reckoning on the national debt.
OBR warns national debt is on ‘unsustainable path’ unless government takes action September 12, 2024 The OBR forecast that government spending would rise to 60 per cent of GDP, from 45 per cent at the moment, whereas revenue will remain flat.
‘Painful’ Budget ahead, Keir Starmer warns in gloomy No10 speech August 27, 2024 Sir Keir Starmer has warned Brits to expect a “painful” Budget this autumn as he insisted the state of the public finances is “worse than we ever imagined”. The Prime Minister addressed the nation from the No10 Rose Garden as he cautioned voters his government’s first fiscal statement would be “short-term pain for long-term good”. [...]
Experts react to Reeves: The finances might be worse than expected – but tax hikes are still coming July 30, 2024 While Rachel Reeves laid out a fiscal inheritance that was worse than many had anticipated, tax rises are almost certainly on the way, economists and experts have said in reaction to the Chancellor's speech today.
Treasury fails to deny capital gains tax hike as Reeves readies ‘broken’ finances warning July 28, 2024 Rachel Reeves is set to warn of the "broken" state of the UK's public finances in a speech on Monday, as rumours of a hike in capital gains tax continue to swirl.
Fiscal prudence? The iron chancellor doth protest too much July 24, 2024 Rachel Reeves’ decision to expand the powers of the OBR suggests apprehension, not confidence, writes Tim Focas. Rachel Reeves has promised to be an “iron chancellor” embodying fiscal constraint and discipline. Yet, her first legislative move to enhance the powers of the Office for Budget Responsibility (OBR) raises questions about her own confidence in living [...]
Tedium alone won’t restore confidence in the economy July 23, 2024 The theory of Ricardian Equivalence posits that financing public spending out of taxes or borrowing will have the same overall economic consequences. This, David Ricardo argued in 1820, was because rational consumers understand that debt will eventually have to be paid off. They will therefore set aside current income in anticipation of future tax rises. [...]
King’s Speech: Labour to legislate OBR fiscal lock to boost ‘market credibility’ July 17, 2024 Labour will legislate for a fiscal lock to require the OBR to provide an independent assessment of any major tax and spending plans.
OBR, workers rights and planning: What to watch out for in the King’s Speech? July 16, 2024 Labour will set out their programme for government on Wednesday, when King Charles will deliver the King’s Speech as part of the state opening of Parliament.