The false assumptions underlying the government’s fiscal rules

You’d be forgiven for thinking it’s 1931: fiscal rules edition

It’s been four to five months since the Budget, and a Labour Chancellor of the Exchequer faces a conundrum. The forecasts for the economy’s performance have been too optimistic, and the borrowing figures mean that the Chancellor can no longer comply with their fiscal rules. The Chancellor might like to either change the fiscal rules or to not comply with them, but neither option feels attainable, but the Chancellor can’t even countenance it. Ins…

The false assumptions underlying the government’s fiscal rules

Steve Laughton explains how government spending really works.  “When we’re spending £100bn a year on servicing government debt, I don’t think anyone could seriously argue we don’t need to get a grip on government borrowing and government debt”. Rachel Reeves, on Bloomberg. Think again. “Piggynomics” The principle that underpins Reeves’ concerns is that Musk is […]