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Financial Times — World — Fiscal Policy — Duncan Weldon — Uk Business & Economy — Uk Government Spending

Making UK fiscal policy dull again is only storing up trouble

Jeremy Hunt and Rishi Sunak are making fiscal policy dull, but the times call for a bolder approach. The Bank of England still expects a recession, and Hunt's decisions will lead to short term budget balance but add to long-term growth problem.

1 min read
  • Liz Truss and Kwasi Kwarteng attempted to make fiscal policy exciting, but it caused the price of gilts to fall and mortgage rates to jump.
  • Jeremy Hunt and Rishi Sunak are making fiscal policy dull, but times call for bolder approach.
  • Economy didn't contract in 4th quarter of last year, but Bank of England still expects recession.
  • Tax receipts have run ahead of expectations, but OBR likely to downgrade growth prospects.
  • Hunt's decisions will lead to short term budget balance, but add to long-term growth problem.
Making UK fiscal policy dull again is only storing up trouble
Jeremy Hunt’s determination to exorcise ghosts means Britain’s long-term problems will continue to go unaddressed
Financial TimesDuncan Weldon

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